Die Premier van die Noord Kaap, Cde

Sylvia Lucas,

Al die leierskaap van die provinsie,

Verteewoordige van die gemeenskap

Besigheids en bree (business and civil society) ,

Al die gemenskaap van Ubuntu en Pixley,

Ek bedank die leierskap and die hele gemeenskap van die Noord Kaap wat ons vandag ontmoet

Ons is baie bly om hier te wees Ons waardeer dit.

Siya bulela.

Die doel van ons besoek vandag is van skale gas gaan praat. Somige vir ons is bewus van die skale gas, en andere nie. Ons is hier om die vrae beantwoord. Ons is bewus somige van die gemeenskap is bekomerd oor die besoedeling van water en die beskadiging van die ongewing. Die regeering doen alles in sy vermoer om dit te keer, waarvan ons vir julle vandag gaan vertel.

Let me first indicate that our beloved country is one of the most sophisticated and promising emerging markets globally, mainly because of abundant natural resources and exploration prospects. Additionally, the recoverable resource of shale gas is estimated at up to 50 trillion cubic feet (Tcf) in the Karoo Basin especially in the Eastern, Northern, and Western Cape provinces. This is why we are here today, to be able to share information on this resource which could potentially be found in the Northern Cape Province. This is the province which is also known to be the host of various minerals ranging from manganese, diamonds and iron ore, to name a few.

Last year we hosted a successful and similar engagement with the communities of the Eastern Cape Province. I am confident that we will today have a fruitful engagement whereby we will together realise and have an understanding of what shale gas is, as well as hydraulic fracturing, that is the methpod used to extract the gas.

We believe it is equally important that while we share with you information on the importance and benefits of developing the gas resources, we also listen to your concerns as the communities where this resource could potentially be found. It is also in our interest to see all the people of South Africa benefiting both socially and economically from the mineral wealth of our country.

South Africa has for many years been largely dependent on coal as a single source of energy. It is for this reason that, government has taken a decision to diversify the country’s energy basket with the aim of providing a cost-competitive energy security, and to significantly reduce the carbon footprint as well as to drive the industrialisation and beneficiation programme to realise an inclusive economic growth.

The development of shale gas – if proved to be economically extractable – is also expected to create direct and indirect employment opportunities and contribute meaningfully to the country’s Gross Domestic Product (GDP). Other potential economic benefits of shale gas include business development within local communities, including lower energy prices, creation of black industrialists, employment, specialised skills and youth development. This initiative is in line with the objectives of the National Development Plan (NDP), which defines a fabric of society we aspire to achieve by 2030.

Since 2004, we have introduced major regulatory reforms, which marked a significant shift from private ownership of mineral and petroleum resources to custodianship by the State, on behalf of the people of South Africa. The State exercised its right to govern the development of these resources and to ensure that it optimises their development in an orderly manner that benefits the people of the country.

We are also mindful of the risks and challenges associated with the development of such resource, especially on water and environment. However, we are committed as the government of the people to develop the resources in a manner that is considerate of the country’s water resources and environmental sustainability. We have also taken measures to ensure the farming community benefits from the development of shale gas, whilst the astronomy programme, such as the Square Kilometer Array (SKA) would not be affected through such development.

In addition, the South African Government has augmented the regulatory framework to ensure that the exploration of shale gas resources is orderly and safely developed through technology called hydraulic fracturing. The finalization of Mineral and Petroleum Resources Development Act (MPRDA) amendments will also help to expedite the development of shale gas. Government has taken comprehensive measures to alleviate the risk associated with the development of shale gas. The publication of Regulations for Petroleum Exploration and Production as well as the Karoo Deep Drilling study being undertaken by the Council for Geoscience (CGS), constitute some of these measures. In order for us as the Department of Mineral Resources (DMR) to be well-informed of shale gas developments, we are part of the continuous research initiatives such as the Strategic Environmental Assessment led by the Department of Environmental Affairs. Furthermore, the DMR, through Council for Geosciences and the Petroleum Agency of South Africa (PASA) as its entities, have been mandated to undertake continuous research in line with other research initiatives to enhance our understanding of South Africa’s shale gas resources.

When shale gas was discovered few years ago, concerns regarding possible implications of this resource were raised. Government ensured that before the processing of any applications a socio-economic and environmental assessment of shale gas development was conducted. This was necessary to enable a process of data and information collection for informed decision-making on shale gas development.

Based on the balance of available scientific evidence, government took a decision to proceed with the development of shale gas in the Karoo formation of South Africa.

Government will ensure that you are kept up to date about the exploration method and benefits that can be realised from the development of shale gas and informed about the mechanisms and instruments that seek to augment existing laws for the protection of water resources and for the protection of the environment.

In closing I wish to encourage you to participate fully throughout the process of the development of the shale gas resource, for the benefit of us all and for the future generations of our beloved South Africa.

Enkosi

Baie Dankie