Mineral Resources Minister Susan Shabangu says task-team reports on fracking in the Karoo and the impact of safety stoppages on mining have been finalised
A FINAL report on the contentious issue of fracking for shale gas in the Karoo has been issued by a government-appointed task team, Mineral Resources Minister Susan Shabangu said on Thursday.
The report makes recommendations on whether the government should permit the hydraulic fracturing technique to be used to extract shale gas in the ecologically sensitive Karoo. A moratorium was placed on prospecting pending its finalisation.
The report was compiled by a special task team appointed by Ms Shabangu last year. It will be submitted to the Cabinet for consideration by July, she said on Thursday.
Shell is among companies keen to prospect for gas but has come up against fierce opposition by the Treasure the Karoo Action Group, which argues that fracking would contaminate water sources. Those in favour extol the benefits that gas extraction could bring to meet South Africa’s energy needs.
Shell has applied for a prospecting licence to explore an area of 30000km². In its environmental management plan, the multinational said up to eight drilling sites could be established in the Karoo.
SAFETY STOPPAGES
On Thursday, Ms Shabangu also told reporters at a media briefing ahead of her budget vote speech in the National Assembly that the report of the task team that investigated the impact of the implementation of section 54 of the Mine Health and Safety Act on the industry was also ready.
The section allows inspectors to stop production in the event of a fatality. Ms Shabangu acknowledged the need to refine the implementation of the section, which would be applied as a corrective rather than a penalising measure.
She said the report examined whether application of the section contributed to a decline in mining industry profits and production and whether it was appropriate for inspectors to shut down mines.
The platinum sector in particular was hit by section 54 production stoppages, often of a prolonged nature. In the case of Anglo American Platinum, there were 81 safety stoppages last year, compared with 36 in 2010.
LICENCE APPLICATIONS
The minister said proposed amendments to the Mineral and Petroleum Resources Development Act would be submitted to the Cabinet soon. These seek to clarify ambiguities on, for example, how environmental considerations affect the issuing of prospecting and mining licences.
The amendments strive to introduce certainty into the regulatory framework and ensure that licence applications are made simultaneously to the Department of Water Affairs and Forestry and the Department of Mineral Resources to prevent situations where companies obtain a prospecting or mining licence only to wait months or years for a water licence, which could even be refused.
The role of local authorities in mining licence applications will also be clarified, as will the requirements relating to consultation with communities.
Ms Shabangu said the process of applying for licence applications was now fully online, which she hoped would help reduce corruption. All 3500 old and new applications have been loaded on to the system.
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