B Sonjica: Sod turning ceremony at Richard Bay Coal Terminal

22 September 2006

Master of ceremonies
Dr Zweli Mkhize, MEC for Finance and Economic Development
The executive chairman of RBTC, Mr Kuseni Dlamini and your team
Your Worship, Dr Denny Moffat, Mayor of Umhlathuze
His Worship, Mr BV Mtetwa, Mayor of Uthungulu
Other councillors present
Chair of the Chamber of Business
Honoured guests
Ladies and gentlemen

I will start by thanking Mr Kuseni Dlamini, the executive chair of RBCT for
inviting me to this celebratory occasion of the opening of the RBCT Phase V
project. I am happy also to acknowledge the 409 809 tons loaded in one day.
This is a world record and must be celebrated.

I must also congratulate the labour movement for a successful conclusion to
their conference, meant to consolidate their agenda to advance the interests of
the workers. After many years of disappointment, waiting and hard work, the
working teams have finally begun the expansion of the Richards Bay Coal
Terminal to a capacity of 91 million tons per year. In spite of the doubts that
many of the industry's players have had about the future of coal exports in
South Africa, especially when some of the largest mines have been cutting
exports instead of increasing them, the hard and continuous work of groups such
as the Coal Industry Task Team (CITT), have demonstrated that the coal industry
in South Africa is not failing, but it continues to occupy centre stage as one
of the largest in the world.

The CITT was formed through the tireless effort of all the players in this
industry with the aim of sharing this coal terminal that at the time was
reserved for its shareholders only. This happened in anticipating the
implementation of the Mineral and Petroleum Resources Development Act (MPRDA)
as an increase for coal export infrastructure for the new Black Economic
Empowerment (BEE) coal mines was anticipated as compliance with the MPRDA made
sure that there are new entrants who would be able to participate in all levels
in this industry. I am happy to see that the CITT still exists even today and
that it continues to assist all the stakeholders in making sure that
infrastructure is shared by all to an extent. The CITT has managed to assist in
the establishment of 18 new BEE coal exporters. This fact alone has proven
that, given the right port and rail infrastructure, many more mines can join
the ranks of the existing exporters and therefore increase not only their coal
exports' production, but also supply more coal for an energy-hungry inland
industry that is in great need of it.

As a result of the successful incorporation of BEE coal companies to the
export market, the BEE coal industry component, which was very small in 1997,
has grown to 31 mines in 2005, with a total coal production of 68 million tons
or 28 percent of the country's output. It is my hope that this initial success
will be followed by the establishment of many more BEEs in coal, so that in
2009, when the new RBCT's capacity becomes available, it can be fully
utilised.

Coal remains the backbone of South Africa's energy. In the words of the
World Energy Council: "Coal will continue to be an expanding, cheap foundation
for economic and social development." However, South Africa, as a member of the
International Energy Agency Clean Coal Science Agreement since 2003, has the
duty to implement clean coal technologies when new mines and power stations are
developed and built. We are one of the biggest emitters. Not just in the
developing world, but also in the developed world. Essentially these will
control and reduce emissions, improve operating efficiency and will identify
methods for the effective utilisation of combustion by-products. Given the
right technology, coal will no longer be a threat to the environment, but will
remain the world's major energy resource.

As Electricity Supply Commission (Eskom)'s policy for more future coal-fired
power generation develop, so will the need for this commodity grow. This, as
well as favourable prices from international markets, has stimulated plans for
the opening of many more coalmines. Scores of new mines will be within the
Central Coal Basin, in Mpumalanga, but there are also projects in most of the
other coal-bearing areas of the country, as well as in neighbouring countries
like Botswana and Mozambique.

I am pleased to say, as the RBCT press release has stated, that the bulk of
the new export capacity will be dedicated to BEE groups, this will broaden
their opportunities of making their collieries more successful. As more of
these new mines develop, and more feasibility studies are being carried out,
the mineable coal reserves of the country will increase, giving a new lease of
life to an industry that some thought was about to become extinct.

I would like to congratulate RBCT for its efforts, I know the journey was
rough but we trust that the expansion project will be safe and trouble-free and
be commissioned as planned. We also hope that we will see more entrants to the
industry and these will play a more meaningful role during the construction
phase of this extension and will also aspire to be exporters and future owners
of this extended terminal.

It is high time that we, as South Africans, stop having facilities for those
who were advantaged in the past whilst new entrants remain as beggars of such
infrastructure. Let us open up opportunities for local people. This will help
in uplifting the poor and those in the second economy. I would also like to see
more women in senior management positions in the company.

South Africa is a developing economy, and the economy is undergoing
transformation. All efforts of transformation are carried in government
policies and are about a better life for all, eradicating poverty, as well as
accelerating shared growth. This is work in progress. We as government cannot
do it alone. The partnership between government and the private sector is
crucial to address this challenge.

We congratulate you and wish you well, especially as you will create 3 500
jobs. Indeed this is no small feat.

I thank you.

Issued by: Department of Minerals and Energy
22 September 2006
Source: Department of Minerals and Energy (http://www.dme.gov.za)