How to Apply For a Mining Right in South Africa
The process of applying for a mining right is more straightforward when guided by legal experts who can support you in navigating the legal framework and engaging with the regulators. In South Africa, mining and exploration are primarily governed by the Mineral and Petroleum Resources Development Act of 2002 (“MPRDA”). To explore and exploit South Africa’s minerals, the law requires that you first obtain the appropriate right depending on the type of activity (prospecting or mining).
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Key takeaways – Eskom’s Transmission Development Plan 2023 – 2032
In October 2023, Eskom Holdings SOC Limited (“Eskom”) published the Transmission Development Plan 2023 – 2032 (“the 2023 Transmission Plan”). The 2023 Transmission Plan primarily focuses on South Africa’s transmission network with electrical networks that have voltages ranging from 220 kV to 765 kV. The purpose of the 2023 Transmission Plan is to assess South Africa’s network requirements and propose plans to meet the load demand and generation integration forecasted in the next 10 years. Electricity Generation Forecast in the 2023 Transmission Plan The 2023 Transmission Plan forecasts electricity generation based on two generation methods, namely: the conventional generation method (this uses coal and other non-renewable resources to generate electricity) and the renewable generation method (which uses renewable energy sources to generate electricity). Renewable energy plays an important role in Eskom’s electricity generation forecast over the coming 10-year period to which the 2023 Transmission Plan applies. Renewable energy sources such as solar energy and wind energy are of particular significance, given South Africa’s strategic advantage in its abundance of these resources. The 2023 Transmission Plan anticipates that the cumulative conventional capacity that will be added to the electrical grid by 2032 is a total of 17 809 MW, with the majority of this generation capacity coming from coal sources. However, due to funding constraints experienced by independent power producers that use coal sources, the 2023 Transmission Plan expects that energy generated from open cycle gas turbines will also play a noteworthy role in meeting South Africa’s energy needs. According to the 2023 Transmission Plan, the need for and importance of open cycle gas turbines will only increase as more renewable energy capacity is installed. According to the 2023 Transmission Plan, the total renewable capacity that will be added to the country’s energy mix is approximately 43 336 MW by 2032. Of the capacity expected to be added, the 2023 Transmission Plan anticipates that solar photovoltaic energy generation technology will add approximately 18 326 MW to the country’s energy grid. Whereas the 2023 Transmission Plan anticipates that approximately 26 347 MW of energy will be added to the country’s energy grid by wind energy generation technologies. Solar and wind energy is anticipated to make up the vast majority of all renewable energy added to South Africa’s energy grid over the coming 10 years. The 2023 Transmission Plan forecasts that from the period of 2023 – 2032, Eskom anticipates that approximately 45GW of renewable energy will be generated (this includes energy generation from solar technology and wind technology), 27 GW of electricity will be generated from coal sources and 8.5 GW of electricity will be generated from open cycle gas turbines and closed cycle gas turbines. Significantly, hydro power and nuclear power have not been discussed at length as part of the country’s energy mix in the 2023 Transmission Plan. The 2023 Transmission Plan expects renewable energy, as a percentage of total energy capacity, to increase from 13% in 2022 to 46% in 2032. Conversely, conventional generation is expected to decrease from 87% in 2021 to 47% in 2032. Interestingly, though the 2023 Transmission Plan makes significant strides to integrate renewable energy sources into the […]
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