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South Africa’s Department of Mineral Resources and Energy (DMRE) has announced major updates to ongoing policy adjustments, regulatory frameworks and energy legislation in the country.

Ntokozo Nzimande, DMRE Deputy Director-General, revealed at African Energy Week: Invest in African Energies' pre-conference that South Africa's National Petroleum Company will be officially established on November 7. The new parastatal oil company will be designed to take advantage of South Africa’s resources while finding international partners to invest in infrastructure across the country and the rest of Africa.

Meanwhile, Nzimande also announced that South Africa is developing a Critical Minerals Strategy, which is set to launch before the end of the year. The strategy will provide a national framework for South Africa to grow its minerals sector and achieve the government’s vision to become a global supplier of critical minerals in the wake of the energy transition.

“South Africa’s Critical Minerals Strategy will serve as a blueprint for the country in terms of how you progress mining in the future while positioning South Africa in the global market where there’s a huge demand for critical minerals,” she stated.

Nzimande stated that the DMRE is currently reviewing South Africa’s Petroleum Products Bill, which aims to position the country as an investor-friendly market for the upstream sector. The Bill is poised to create a liberalized market in the country, which will allow South Africa to diversify its energy space while promoting job creation and economic diversification.

Boasting a long history of mining and minerals processing, it was also announced that the African Union (AU) is developing a strategy for green minerals for the continent. The strategy will ensure that Africa benefits from its own natural resources. Inter-governmental legislation will be used to scale up infrastructure and process minerals in-country throughout the continent, in order to drive GDP growth and wealth retention in the mining sector.

Furthermore, the DMRE has developed a profile for South Africa’s Gas Master Plan. Nzimande stated that the department has looked at the growth of gas consumption in the country and its forecasts in the near future. With this, the plan will focus heavily on intra-African infrastructure and trade while leveraging untapped natural gas resources in South Africa’s onshore Karoo and offshore Orange Basins.

“We are improving the ease of doing business through policy adjustments, but we are also looking at transforming our licensing regime to make it easier and quicker for investors,” Nzimande stated. “We are also looking at de-risking our acreages. A month ago, the Minister [of Mineral Resources and Energy] gazette a notice to undergo a 2D seismic survey in the Karoo. This will give a lot more confidence to investors.”

Nzimande concluded by indicating the immense potential South Africa offers in terms of driving energy access and diversification across the continent. In support of the development of natural gas as a transition fuel, she highlighted the importance of international investment in Africa’s natural resources while also investing in infrastructure to drive local development and job creation.