Remarks by the Chairperson of the Committee on Mineral and Petroleum Resources, Mr Mikateko Mahlaule, on the Occasion of the Economics Cluster Media Briefing

To download a soundbite of Mr Mahlaule's remarks, click on this link: https://iono.fm/e/1710394

Programme Director: Mr Moloto Mothapo

The Chairperson of the PC on Land Reform and Rural Development, Mr Mncwango

Members of the media and stakeholders, greetings to all of you

I am going to talk to you and have engagement with you on four main points:

1. SOUTH AFRICAN NATIONAL PETROLEUM COMPANY BILL, 2026

The Upstream Petroleum Resources Development (UPRD) Act, 2024 (Act 23 of 2024), which was signed into law by President Cyril Ramaphosa in October 2024, separates petroleum regulation from mining legislation. In terms of section 34 of the Act, a state-owned company, namely the South African National Petroleum Company, is designated to manage the state's participation in the upstream petroleum sector.

At the time of processing the UPRD Bill, the precise institutional form of the SANPC had not yet been determined. Greater clarity emerged on 10 June 2020, when Cabinet approved a Department of Mineral and Petroleum Resources proposal to merge three subsidiaries of the Central Energy Fund, namely the South African Gas Development Company, or iGas, PetroSA and the Strategic Fuel Fund (SFF.)

The intention was to establish a single, consolidated state-owned petroleum company, the SANPC. This is aligned with the broader government objective of rationalising and repositioning state-owned companies in order to support economic growth and development.

At present, SANPC has been incorporated as a subsidiary of the CEF Group as an interim arrangement, pending the promulgation of the SANPC Bill. In the interim, SANPC operates under a lease-and-assign model, whereby certain assets of the merging entities are leased to SANPC until the legislative process is concluded.

Regarding the legislative process, Cabinet approved the SANPC Bill on 9 October 2024. The Bill was subsequently submitted to the Office of the Chief State Law Adviser for legal and technical refinement and was formally referred to the Portfolio Committee on Mineral and Petroleum Resources on 11 February 2026 for parliamentary processing.

The purpose of the Bill is to provide for the establishment of the South African National Petroleum Company; to define its objects and functions; and to regulate its governance, including the appointment and composition of its Board and executive management. The Bill also provides for the consolidation and transfer of assets to the company, financial management arrangements, and the appointment of the Chief Executive Officer, Chief Financial Officer and other employees. It further provides for transitional arrangements relating to the transfer of human resources and assets from iGas, SFF and PetroSA to SANPC.

I am pleased to report that the committee is now entering the deliberation phase on the Bill. On 18 August, the committee received oral presentations from members of the public who had made submissions. On Friday, 21 August 2026, the committee will receive responses to the 25 public submissions received. We place a very high value on public participation because it enables Parliament to consider different perspectives and to make better-informed decisions when processing legislation.

We aim to finalise the Bill before the end of this year, provided that the committee is satisfied that the concerns raised by the public, together with the issues identified by its members, have been adequately addressed.

2. MINE HEALTH AND SAFETY AMENDMENT BILL, 2026

The committee is also processing the Mine Health and Safety Amendment Bill. The Bill was approved by Cabinet for submission to Parliament in October 2024 and was formally referred to the Portfolio Committee on Mineral and Petroleum Resources on 7 April 2026. The committee received a briefing from the department on 26 May 2026. We subsequently advertised the Bill for public comment, and the closing date for submissions is 21 August 2026.

We encourage interested stakeholders, organisations and members of the public to make submissions before the deadline.

The Bill seeks to amend the Mine Health and Safety Act, 1996 (Act 29 of 1996). This is not the first amendment to the Act. The previous significant amendment was through the Mine Health and Safety Amendment Act, 2008 (Act 74 of 2008).

The current Amendment Bill is premised on five core principles aimed at modernising and strengthening the regulatory framework of the mining industry. These include streamlining administrative processes, strengthening accountability, aligning the Act with other legislative frameworks, updating safety standards and definitions, and significantly increasing penalties for non-compliance.

There has been significant progress in improving health and safety in the mining industry since the promulgation of the 1996 Act.

Fatalities have declined substantially over this period. Total fatalities decreased from 615 deaths in 1993 to 54 in 2023, representing a reduction of approximately 91 per cent over 30 years. The industry recorded 16 fatalities in 2025.

Gold mining remains the largest contributor to mining fatalities. Gold-mining fatalities declined from 426 in 1993 to 20 in 2023. This can, among other factors, be attributed to the challenges associated with deep-level mining, seismicity and rockfalls, ageing infrastructure and complex underground working conditions.

There have also been reductions in fatalities in mining other commodities. Platinum-mining-related fatalities declined from 29 in 1993 to 22 in 2023, while coal-mining fatalities declined from 90 to six over the same period.

However, mine health and safety is not only about preventing fatalities and injuries. It must also address occupational diseases and the broader health and wellbeing of mineworkers.

There have been substantial declines in several major occupational diseases between 2013 and 2024. Pulmonary tuberculosis, or TB, declined from more than 3 000 cases annually to below 1 000. Silicosis declined sharply from approximately 1 400 cases to fewer than 200. Noise-induced hearing loss has also declined, although it remains one of the more prevalent occupational diseases. Coal workers' pneumoconiosis remains relatively low and continues to decline. HIV prevalence has also decreased significantly, with the HIV positivity rate declining from 11.5 percent in 2015 to 2.6 percent in 2024. Similarly, TB incidence declined from 884 cases per 100 000 population in 2015 to 187 in 2024.

These trends suggest that workplace health programmes, testing, treatment and prevention initiatives have had a measurable impact.

However, the committee is concerned about the significant increase in non-communicable diseases and mental health conditions among mineworkers.

Non-communicable diseases increased from 84 685 cases in 2020 to 156 818 in 2024, representing an increase of approximately 85 percent in five years. This points to the growing prevalence of conditions such as hypertension, diabetes, cardiovascular diseases and other chronic illnesses among mineworkers. Mental health cases increased by approximately 291 percent between 2020 and 2024.

Depression remains the largest category, while significant increases have also been recorded in bipolar disorder and post-traumatic stress disorder. This indicates that mental health is emerging as a major occupational health challenge in the mining industry.

As we process the Bill, the committee will therefore pay particular attention to the prevention, identification and management of non-communicable diseases and mental health conditions.

Given the importance of mine health and safety, and the significant amendments proposed by the Bill, the committee has resolved to conduct provincial public hearings, subject to the availability of resources from Parliament. We also intend to finalise the processing of the Bill before the end of the current financial year.

3. ILLEGAL MINING AND THE PROTECTION OF SOUTH AFRICA'S MINERAL WEALTH

Illegal mining remains a significant challenge to the sustainable development of South Africa's mineral resources. It results in the loss of mineral wealth, reduces potential fiscal revenue and royalties, undermines legitimate mining operations and contributes to environmental degradation. This is particularly concerning given the mining sector's contribution to exports, employment, investment and government revenue.

The seriousness of the challenge has also been highlighted by recent loss of life. In July 2026, two South African National Defence Force (SANDF) members died during an operation against illegal mining in Johannesburg after falling into an abandoned mine shaft. More recently, 14 suspected illegal miners were killed, and eight others were injured in a mine-dump collapse near Rustenburg. While these incidents highlight the significant safety risks associated with illegal mining, they also underscore the need to address the underlying regulatory and economic dimensions of the sector.

The committee has taken note that the Cabinet approved the General (Mining) Laws Amendment Bill, 2026 which is out for public comment. We understand that the Bill seeks to strengthen the framework for combating illicit mining and related activities. Importantly, this piece of legislation follows the broader reform proposed through the Mineral Resources Development Bill, 2025, which seeks to modernise the regulatory framework while creating a clearer environment for lawful mining and investment.

4. DEVELOPMENT OF THE PETROLEUM INDUSTRY IN SOUTH AFRICA AND ASSOCIATED CHALLENGES

The mandate of the department we oversee is to promote the sustainable growth, transformation and regulation of the mining, mineral and petroleum sectors. One of the committee's key priorities is to ensure that our natural resources are sustainably managed. Our five-year strategic plan also prioritises support for the development of the oil and gas sector in South Africa.

We support the development of this sector because South Africa remains highly dependent on petroleum imports. This dependence exposes the country to geopolitical developments and fluctuations in international markets.

However, the development of the upstream petroleum industry in South Africa is not without challenges. One of the key challenges is the legal uncertainty arising from litigation by civil society organisations. These organisations have raised concerns regarding meaningful public participation, environmental impacts and the alignment of petroleum development with the climate-change policies adopted by our government.

In this regard, the committee has noted the Constitutional Court judgment concerning Shell and Impact Africa's offshore exploration activities along South Africa's Wild Coast. The committee respects the authority of the Constitutional Court and recognises the importance of ensuring that communities are meaningfully consulted and that environmental considerations are properly addressed when decisions are made regarding the development of our natural resources.

At the same time, we are concerned about the broader implications of prolonged legal uncertainty and repeated delays for investment, exploration and economic development in South Africa's offshore petroleum sector.

I thank you.