Remarks by the Honourable Deputy Minister of Mineral and Petroleum Resources Phumzile Mgcina (MP), Budget Vote 34 Department of Mineral and Petroleum Resources Cape Town, 19 May 2026
House Chairperson,
Minister of Mineral and Petroleum Resources, Mr Gwede Mantashe
Chairperson of the Portfolio Committee on Mineral and Petroleum Resources,
Honourable Mikateko Mahlaule
Honourable Members
Distinguished Guests
It is an honour and privilege to engage with this House on this important occasion.
This Budget Vote provides an opportunity to account to the people of South Africa on the work we continue to undertake in advancing and transforming the mineral and petroleum sectors.
We trust that Members of this House will use this platform to engage constructively on the mandate entrusted to us by the people of South Africa, rather than resorting to grandstanding for narrow political point-scoring.
At a time when our country requires unity of purpose and practical solutions to the socioeconomic challenges facing our people, there can be no room for conduct that seeks to frustrate progress and undermine development.
House Chairperson, during the previous Budget Vote, we committed ourselves to advancing deliberate interventions aimed at expanding the participation of historically disadvantaged South Africans, strengthening beneficiation and industrialisation, and ensuring environmental sustainability through the rehabilitation of derelict and ownerless mines.
Today, we rise to account to the people on the progress we have made together with our entities in implementing these commitments.
Our efforts to expand participation of historically disadvantaged South Africans in the industry are beginning to yield meaningful results. Through the Artisanal and SmallScale Mining Fund, we are steadily advancing our objective of ensuring that the mineral wealth of our country contributes directly towards job creation, economic inclusion, and improved livelihoods of our people.
We are, therefore, pleased to share that during the 2025/26 financial year, twenty (20) projects were considered for financial assistance amounting to R59,7 million. This support covered capital equipment funding as well as financial provision for rehabilitation guarantees.
As part of our initiatives to expand the fund, we are engaging with the Ministry of Small Business Development to determine the most effective partnership strategies for supporting artisanal and small-scale miners, aligning with their existing programmes.
Honourable Members, our industry’s competitiveness hinges on high-quality human capital. Understanding that effective human capital requires investment in training and development, we are working closely with the Mining Qualifications Authority (MQA) to transform our training programmes. By shifting the focus from employment training to executive leadership development, we aim to create a robust pipeline of leaders capable of steering a globally competitive mining industry forward. Further updates on this programme will be shared in due course.
Our commitment to environmental rehabilitation continues to produce tangible outcomes. Through the Derelict and Ownerless Mines Programme, Mintek has made significant progress in closing dangerous mine shafts and rehabilitating asbestos mines.
During the previous financial year, practical completion was achieved on three major asbestos rehabilitation projects, while a fourth project entered the construction phase. In addition, forty (40) derelict and ownerless shafts were successfully sealed in Gauteng, bringing the cumulative number dangerous shafts closed since 2019 to more than six hundred (600).
During the current financial year, Mintek will intensify efforts to complete ongoing asbestos rehabilitation projects in Limpopo and Mpumalanga, while additional rehabilitation work in the Northern Cape. Furthermore, the next phase of shaft-closing operations will target a further forty (40) shafts across Limpopo, Mpumalanga, Gauteng, and KwaZulu-Natal.
House Chairperson, during the 2025/26 financial year, Mintek also advanced a strategically important initiative that speaks directly to South Africa’s priorities of beneficiation, industrialisation, environmental sustainability and inclusive economic growth.
Through its “Coal Reimagined” programme, Mintek has begun repositioning coal fly ash and coal discard materials not merely as waste products of the energy economy, but as potential sources of industrial value, innovation, and economic opportunity.
This work has laid an important technical foundation for the recovery of rare earth elements and vanadium from coal-derived materials. At the same time, it has opened pathways for the development of ash-based products for use in infrastructure, construction, and broader industrial applications.
The Council for Geoscience (CGS) has also continued advancing the characterisation of geological formations suitable for the safe and permanent storage of carbon dioxide, with particular focus on a pilot site in Mpumalanga located near major emission sources. This work has established a credible technical foundation for the implementation of Carbon Capture, Utilisation and Storage (CCUS).
Building on this progress, the CGS has now transitioned the programme into implementation readiness, including the conclusion of procurement processes and the mobilisation of strategic funding and technical partnerships. This positions the programme to move into the pilot-scale injection phase during the 2026/27 financial year.
Honourable Members, the diamond industry continues to operate under difficult global market conditions. Despite these challenges, the State Diamond Trader (SDT) continues to advance its foreign purchase strategy aimed at diversifying sources of rough diamond supply beyond our borders.
The entity has since progressed the strategy of purchasing rough diamonds from Botswana with the intention of improving the availability of suitable rough diamonds for local clients, support domestic beneficiation, and strengthening the entity’s ability to respond to supply constraints in the market.
House Chairperson, the Mine Health and Safety Council (MHSC) continues to play an important role in strengthening health and safety within the mining industry.
The Council’s work remains focused on generating the knowledge, guidance, and practical interventions required to improve working conditions in mines and support the sector’s commitment towards the achievement of zero harm. This year, the MHSC will convene the Mine Health and Safety Tripartite Summit, which will focus on assessing progress against the 2024 Summit milestones and reviewing implementation measures.
This process will strengthen accountability and ensure that commitments made by stakeholders translate into measurable progress in safeguarding mineworkers.
Furthermore, CEF continues to address declining domestic refining capacity through the advancement of the SANPC refinery strategy. This work remains critical in reducing South Africa’s reliance on imported refined petroleum products and ensuring long-term security of supply.
As government, we remain committed to building a mining and petroleum sector that is transformed, competitive, inclusive, safe and environmentally sustainable.
Working together with all stakeholders, we are confident that we can continue advancing a developmental agenda that places the interests of South Africans.
I thank you.
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