Cabinet Approves SANPC Bill and Other Key Legislation to Enhance Energy and Mining Sectors

Minister in The Presidency, Khumbudzo Ntshavheni, highlighted the critical need for local refining capacity, which is predominantly controlled by international oil companies (IOCs).

The Cabinet has approved the submission of the South African National Petroleum Company (SANPC) Bill of 2024 to Parliament, paving the way for the establishment of a state-owned entity that consolidates the functions of PetroSA, the South African Gas Development Company (iGas), and the Strategic Fuel Fund Association. This decision reflects the Cabinet’s commitment, as made on 10 June 2020, to strengthen the country’s energy sector.

Minister in The Presidency, Khumbudzo Ntshavheni, highlighted the critical need for local refining capacity, which is predominantly controlled by international oil companies (IOCs). “The dependence on IOCs poses risks to our liquid fuel security, particularly as these companies are shutting down refineries,” she stated. The proposed legislation aims to position the SANPC as a national champion, responsible for holding oil and gas exploration rights and managing interests in privately held rights through a state carry method.

Draft Petroleum Products Bill

In addition to the SANPC Bill, Cabinet has also approved the publication of the draft Petroleum Products Bill for public comments. This Bill is designed to ensure the security of petroleum products while promoting the orderly development of the petroleum sector. It emphasizes the introduction of modern, cleaner products and renewable components, enhancing the country’s energy mix.

Minister Ntshavheni emphasized that the draft Bill aligns with the government’s priorities on economic transformation and job creation within the South African petroleum products sector. It aims to address several concerns raised regarding the administration of the Petroleum Products Act of 1977.

Mine Health and Safety Amendment Bill

Moreover, Cabinet has approved the submission of the draft Mine Health and Safety Amendment Bill to Parliament. This draft Bill seeks to amend the Mine Health and Safety Act of 1996 by streamlining administrative processes, strengthening enforcement provisions, and increasing penalties for non-compliance.

“The draft Bill will ensure that health and safety standards in mines are effectively implemented, enforced, and continuously improved. Its goal is to significantly reduce fatalities, injuries, and occupational diseases in the mining sector,” the Minister stated.

These legislative measures underscore the government’s commitment to enhancing energy security and improving safety standards in critical sectors, thus fostering economic growth and job creation in South Africa. As these Bills progress through Parliament, public engagement will be encouraged to ensure comprehensive input and support from various stakeholders. 4o mini