COMMITTEE ON MINERAL RESOURCES CONCLUDES PUBLIC HEARINGS ON UPSTREAM PETROLEUM DEVELOPMENT BILL IN MPUMALANGA

The Portfolio Committee on Mineral Resources and Energy concluded a three-day comprehensive public consultation programme on the Upstream Petroleum Development Bill in Mpumalanga.

The committee visited the province’s three districts as part of a nationwide public consultation process to gather citizens’ inputs on the draft legislation which seeks to separate petroleum provisions from minerals provisions as currently provided for in the Mineral and Petroleum Resources Development Act(MPRD).

On Friday the committee held public hearings on the Bill in Bushbuckridge (Ehlanzeni District Municipality), Saturday in Middleburg (Nkangala District Municipality) and concluded today, on Sunday in Secunda (Gert Sibande District Municipality).

The Bill received mixed views from different sectors including political parties, civil society organisations as well as ordinary citizens. Those who supported the draft Bill told the committee that they welcomed the proposed 20% state ownership in petroleum companies and that this would help in job creation and benefit the previously excluded communities.

There was, however, also a differing view from community members who felt the Bill will not succeed in empowering the previously disadvantaged people because it was silent on beneficiation.

The Bill seeks to provide for two independent pieces of legislation addressing matters pertinent to each industry and to bring about stability and security to investors, especially in the upstream petroleum sector. It will also enhance state participation in the upstream petroleum industry and economic transformation of the industry, and provisions which promote petroleum resources development in a sustainable and equitable manner for the benefit of all South Africans.

The Chairperson of the committee, Mr Sahlulele Luzipo, thanked the people of the province for participating in the public hearings and ensured them that all their views are important and will help enrich the law-making process.

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