Jacob Zuma gets into fracking act – enthuses about “game changing” Karoo shale gas deposit

jzSouth Africa’s Government today reaffirmed its determination to exploit shale gas reserves in the Karoo Basin. From our conversations, Trade & Industry Minister Rob Davies is well aware of the potential. It’s now clear he’s done a grand job of getting the Cabinet excited – judging by the speech which SA President Jacob Zuma delivered today at the appropriately named Hotazel (“hot as Hell”) in the Northern Cape.

Zuma was there to officiate at the opening of Kalagadi Manganese’s R6.5bn Sinter Mine, the brainchild of Daphne Mashile-Nkosi and 50% owned by Arcelor Mittal. Apart from congratulating one of SA’s few credible Black woman mining entrepreneurs, Zuma used the opportunity to celebrate a resource which the US EIA estimates has sufficient reserves to cover 310 years of current crude oil use.

Of the Karoo’s share gas discovery, Zuma said: “We are extremely excited about the prospect, because as Government we consider hydraulic fracturing for shale gas a “game-change” opportunity for the Karoo region and for our economy at large. We must explore the potential.”

Following Government’s recent green light on exploration, Shell announced that it plans to invest $250m in six wells. So that potential will soon be explored.

Ever the shrewd politician, Zuma said he’s aware of concerns around water and the environment. As a result: “The Mineral Resources Minister will therefore be coming back to this area early next year to consult with communities, and to hear what the people have to say, before any further decisions are taken by Government on this matter.”


In a different context, the chief executive of SA Inc praised one of the nation’s most successful business expatriates, Johannesburg born and bred head of Glencore Xstrata Ivan Glasenberg. Said Zuma: “When South African companies show confidence in the South African economy, we can achieve great things. We are further encouraged by companies such as the R700bn Glencore Xstrata, which has recently listed on the JSE, demonstrating confidence in the mining sector.”

I’m not sure that “confidence in the mining sector” was Glencore’s prime motivator. More likely it was triggered by pent-up demand created through Exchange Control, a tool Zuma’s ANC inherited from the Apartheid Government. But why quibble? Having Glasenberg and Co among the JSE listings adds to the local market’s global standing. And gives politicians something new to enthuse about. – AH 

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