Committee chairperson Mikateko Mahlaule described the department’s absence as unacceptable
The Portfolio Committee on Mineral and Petroleum Resources has raised serious concerns about the absence of the Department of Mineral and Petroleum Resources (DMPR) during its oversight visit to the Port of Richards Bay.
The committee sought to engage stakeholders on the impact of the Quattro Scheme during this visit.
The oversight visit was part of the committee’s week-long programme, which began in the Eastern Cape and concluded in KwaZulu-Natal on Saturday.
‘Unforgivable’ absence
Committee chairperson Mikateko Mahlaule described the department’s absence as unacceptable, particularly given the challenges facing the Quattro Scheme. The scheme is a key transformation initiative in the coal export sector.
“It is unforgivable that the department elected to disregard such a critical meeting, particularly in light of the challenges facing the initiative, including issues of volume allocation and the sustainability of junior miners,” Mahlaule said.
“Transformation requires focused commitment and collaborative efforts to address all impediments affecting this initiative.”
The committee said it would formally write to the department and request “cogent reasons” for its failure to attend.
A meeting with the department on the matter will be convened at Parliament in Cape Town.
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Quattro Scheme under scrutiny
The Quattro Scheme is jointly managed by the Richards Bay Coal Terminal (RBCT) and the department. The scheme allocates four million tonnes of export capacity to emerging and junior black-owned coal producers.
During the visit, the committee commended RBCT and Transnet for interventions aimed at improving logistics infrastructure. These interventions will facilitate coal movement from mines to the port.
These interventions include the reinstatement of the signalling system. They also include improved operational efficiencies, such as reduced processing times and ensuring the availability of locomotives.
However, the committee said more needed to be done to address persistent challenges facing junior miners.
“While these initiatives are welcomed, the committee has called for enhanced solutions to persistent challenges, including the lack of loading sites for junior miners, the need for co-loading arrangements and improved market access,” Mahlaule said.
He stressed that the urgency of resolving these issues underscored the need for the department’s presence.
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Allocation volumes ‘unsustainable’
The committee also raised concerns about the volumes currently allocated to junior miners under the Quattro Scheme. It warned that these allocations threaten the sustainability of their operations.
It noted that a 5% allocation is shared among 22 junior miners. This amounts to approximately four million tonnes per annum and acts as a barrier to access, particularly in a volatile coal export market.
“The fact that junior miners have consistently met their allocated volumes should serve as sufficient justification to review and increase these allocations, thereby supporting the sustainability of their investments,” Mahlaule said.
The committee said it would continue sustained engagement on the Quattro Scheme. The committee cited its significant potential to transform the coal export sector.
“The committee seeks to assess the condition of the SAPREF infrastructure, understand the scale and nature of inherited liabilities, and determine the implications for the state and the broader energy security landscape,” Mahlaule said.
In addition, the committee visited the Transnet Island View Precinct in Durban to monitor infrastructure upgrades at the liquefied petroleum gas terminal. This followed a directive by the Minister of Transport to extend the 25-year lease.
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