How To Apply For An Environmental Authorisation
Looking to apply for an environmental authorisation but unsure where to begin? Sitef & Co provides an overview of the process & requirements.
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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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OIL AND GAS | 5 THINGS TO KNOW ABOUT THE UPSTREAM PETROLEUM RESOURCES DEVELOPMENT BILL
OIL AND GAS | 5 THINGS TO KNOW ABOUT THE UPSTREAM PETROLEUM RESOURCES DEVELOPMENT BILL The South African oil and gas sector requires significant investment for the development and growth of the upstream petroleum industry. In an attempt to accelerate the exploration and production of oil and gas, the Upstream Petroleum Resources Development Bill B13B-2021 (UPRD Bill) was introduced to the National Assembly in July 2021. The National Assembly passed the UPRD Bill in October 2023 and currently, the UPRD Bill is with the National Council of Provinces for concurrence. Below we outline 5 things you need to know about the UPRD Bill: Number 1: The State is custodian and acts through the Minister of Mineral Resources and Energy The State is the custodian of all petroleum resources, and the State acting through the Minister of Mineral Resources and Energy (Minister) may grant, issue, refuse, control, administer and manage any rights or permits provided for the in the UPRD Bill. Number 2: The UPRD Bill provides for 4 rights/permits: Petroleum rights are granted to explore for and produce petroleum. Petroleum rights may be granted for either i) onshore or offshore acreage in shallow waters; or ii) acreage designated as frontier and offshore acreage in deep waters. A petroleum right for shallow waters may for the exploration phase be granted for 9 years; and for the production phase, for an initial period of 30 years and may be renewed for an unlimited period of 10 years per term. A petroleum right for deep waters may for the exploration phase be granted for a period of 14 years; and the production phase, for an initial period of 30 years and may be renewed for an unlimited period of 10 years per term. Drilling permits may be applied for by holders of petroleum rights because a petroleum right holder may not undertake drilling without a drilling permit. The application for a drilling permit must be submitted to the Petroleum Agency and approved within 60 days from the date of lodgement, subject to terms as it may determine. Holders of petroleum rights may also apply for retention permits within 180 days after electing to develop the discovery. A retention permit may be obtained if i) the economic development of gas can only be accomplished where gas produced as the primary or secondary product is sold commercially; or ii) the development and production of petroleum would be uneconomical because of unfavourable prevailing market or economic conditions. A retention permit suspends the terms and conditions of the petroleum right to which the retention permit relates. Reconnaissance permits are granted to acquire seismic data by conducting reconnaissance operations. Reconnaissance permit is granted for a period not exceeding 2 years. Notably, the holder of a reconnaissance permit has an exclusive right to market any data acquired under the reconnaissance permit for a maximum period of 10 years, which period must be reckoned from the date of lapsing of the permit. Number 3: The UPRD Bill provides for licensing rounds: The Minister may administer competitive licensing for petroleum rights through invitations for applications in respect of blocks specified in […]
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Policy changes attract investment – Mining Weekly
Recent mining policy reforms in Malawi aim to facilitate the sustainable development of the country’s mining industry and mining practices as well as reap the “full benefits” of the country’s vast mineral wealth, reports law firm Sitef and Co director Mihlali Sitefane. Read More Here
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Critical Minerals Conference 2023 – Cape Town, South Africa
Sitef & Co was represented at the 2023 Critical Minerals Africa Conference hosted in Cape Town, South Africa. These snapshots capture the African critical minerals dealmaking space, standing at the intersection of energy and mining, linking global consumers and producers, and bringing capital and buyers to African projects. Hon. Monica Chang’anamuno, Minister of Mining, Malawi, Mihlali Sitefane Director at Sitef & Co Mihlali Sitefane Director at Sitef & Co, Mashudu Lembede Metals and Minerals Market Leader at Bureau Veritas, Hon. Martin Gama Abucha, Minister of Mines, Republic of South Sudan, , Winfridah Mofu Senior Corporate Manager FNB, Zambia, Albert Nyemba, Energy Minerals Officer Ministry of Mines and Mining Development. Mihlali Sitefane Director at Sitef & Co
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Mining Weekly – Energy balancing act highlighted
While Zimbabwe is well placed to take advantage of growing demand for critical minerals associated with the global energy transition, the country’s unstable energy supply requires urgent intervention. Read the full article HERE
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Great potential in Zim Mining despite challenges
Great potential in Zim Mining despite challenges Most of Zimbabwe’s electricity is generated by coal-fired thermal power plants and hydropower plants, with the total generating capacity exceeding 2 000 MW. However, Sitefane notes that the country is producing only about 1 400 MW because of regular breakdowns at its thermal power stations, while water shortages affect its main hydropower plant. Hence, the unstable supply of electricity poses a significant challenge for the mining sector. Read the Full Article Here
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Weighing up renewable energy
With the South African mining sector facing obstacles in terms of securing reliable and sustainable electricity, a clear view of the opportunities and challenges of integrating renewable energy into mining operations to fortify the sector’s contribution to the economy, is necessary, advises law firm Sitef and Co’s director Mihlali Sitefane and representative Njabulo Mchunu. Read the full article HERE
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eNCA Interview – Illegal Mining
In case you missed it, here is a short clip of the eNCA interview with our Director, Mihlali Sitefane discussing the impacts of illegal mining.Read the full article HERE
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