South Africa will accelerate upstream petroleum development, expand refining capacity and push ahead with the operationalisation of the South African National Petroleum Company as part of government’s response to global energy-market instability.
Tabling the Department of Mineral and Petroleum Resources’ R2.86-billion budget in Parliament on Tuesday, Mineral and Petroleum Resources Minister Gwede Mantashe said energy security had become central to economic stability as conflict in the Middle East continued to disrupt global energy supply chains.
“We are tabling this Budget Vote during a difficult period in the global economy,” he said.
Government’s strategic response includes accelerating the upstream petroleum industry and expanding South Africa’s refining capacity, despite “persistent pressure from certain environmental lobby groups”, Mantashe said.
“The fact remains that petroleum security is not a theoretical debate, but an economic necessity and a national imperative,” he said.
The budget includes R94.98 million for the Petroleum Agency South Africa and R48.1 million for implementation of the Shale Gas Project.
“For this reason, it is imperative that we accelerate processing of the South African National Petroleum Company Bill to enable the full operationalisation of the SANPC as a strategic state-owned entity to enable meaningful and strategic state participation in the oil and gas sectors, as envisioned in the Upstream Petroleum Resources Development Act,” Mantashe said.
He said South Africa had sufficient fuel supply to meet demand.
“Working closely with industry stakeholders, we continue to monitor the supply situation and will ensure ongoing transparency in this regard,” he said.
The mining sector also remains a key part of the department’s economic focus, with mining gross value add reaching R477 billion in 2025 and contributing about 6.3% to GDP.
This growth was driven largely by strong iron ore and manganese exports, improved commodity prices and strong sector performance during the first three quarters of the year, Mantashe said.
Mining royalties collected into the fiscus totalled about R11.8 billion in 2025, up 11% from R10.6 billion in 2024.
However, he said rising electricity costs were placing severe operational pressure on mining companies, particularly deep-level gold and platinum group metal operations.
The department’s budget also includes R666.9 million for the Council for Geoscience, R328.7 million for Mintek, R140.87 million for the rehabilitation of derelict and ownerless mines and R23.48 million for the Mine Rehabilitation Research Project.
The department’s budget also includes R666.9 million for the Council for Geoscience, R328.7 million for Mintek, R140.87 million for the rehabilitation of derelict and ownerless mines and R23.48 million for the Mine Rehabilitation Research Project.
