Budget Vote Speech by Minister Shabangu 2011-2: MPRDA review, Karoo fracking, SAMRAD and rehabilitation of derelict mines
Summary
A budget vote speech delivered by Minister Shabangu on 2 June 2011, outlining the Department of Mineral Resources' budget for the 2011/12 financial year, regulatory reforms to the MPRDA and Mine Health and Safety Act, the launch of a state-owned mining company, and specific environmental interventions regarding the Karoo and derelict mines.
Key insights
- The Department of Mineral Resources presented a budget of R1,036 billion for the 2011/12 financial year, an increase of R40 million over the previous year's R995 million. The allocation includes R247 million for Administration, R147 million for Mine Health and Safety, R160 million for Mineral Regulation, and R480 million for Mineral Policy and Promotion.
- The department launched the South African Mineral Rights Administration (SAMRAD), an online licensing system, on 18 April 2011. As of the speech date, more than 627 applications had been lodged through the system.
- The African Exploration and Finance Mining Company was launched in February 2011 as the nucleus of a State Owned Mining Company (SOMCO), with its first coal mining project intended to supply Eskom by June 2011.
- A review of the Mineral and Petroleum Resources Development Act (MPRDA) is underway to remove ambiguities, streamline licensing, and improve consultation processes. The proposed amendments include strengthening environmental regulation and allowing the Minister to invite applications for mining rights in areas where rights were previously granted, issued, revoked, or expired.
- Minister Shabangu imposed a moratorium on shale gas exploration in the Karoo in February 2011, a decision subsequently confirmed by the cabinet. A task team of senior government officials has been appointed to research the issue and formulate government policy.
- The department is addressing the legacy of derelict and ownerless mines that pose health, safety, and environmental risks. In the 2010/11 financial year, five sites were rehabilitated: Jebolo, Owendale, Strelley, and Prieska (both actual rehabilitation and wall construction).
- Mine safety concerns were highlighted by an 8% increase in fatalities in the second quarter, rising to 53 fatalities from 49. The department plans to implement the recommendations of a task team regarding massive falls of ground at platinum mines and will use the Amendment Act no 74 of 2008 to impose financial penalties on employers for MHSA violations.
Cite the original document
- APA
- Shabangu, M. (2011). Budget Vote Speech by Minister Shabangu 2011-2: MPRDA review, Karoo fracking, SAMRAD and rehabilitation of derelict mines. Centre for Environmental Rights. https://cer.org.za/news/budget-vote-speech-by-minister-shabangu-2011-2-mprda-review-karoo-fracking-samrad-and-rehabilitation-of-derelict-mines
- Chicago
- Shabangu, Minister. Budget Vote Speech by Minister Shabangu 2011-2: MPRDA review, Karoo fracking, SAMRAD and rehabilitation of derelict mines. Centre for Environmental Rights, 2011. https://cer.org.za/news/budget-vote-speech-by-minister-shabangu-2011-2-mprda-review-karoo-fracking-samrad-and-rehabilitation-of-derelict-mines.
- Wikipedia
- {{cite press release |last1=Shabangu |first1=Minister |title=Budget Vote Speech by Minister Shabangu 2011-2: MPRDA review, Karoo fracking, SAMRAD and rehabilitation of derelict mines |publisher=Centre for Environmental Rights |date=2 June 2011 |url=https://cer.org.za/news/budget-vote-speech-by-minister-shabangu-2011-2-mprda-review-karoo-fracking-samrad-and-rehabilitation-of-derelict-mines |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @misc{shabangu2011budget, author = {Shabangu, Minister}, title = {{Budget Vote Speech by Minister Shabangu 2011-2: MPRDA review, Karoo fracking, SAMRAD and rehabilitation of derelict mines}}, publisher = {Centre for Environmental Rights}, year = {2011}, month = jun, url = {https://cer.org.za/news/budget-vote-speech-by-minister-shabangu-2011-2-mprda-review-karoo-fracking-samrad-and-rehabilitation-of-derelict-mines}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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