Environmental Considerations Alone Must Not Stall South Africa’s Exploration and Job Creation Ambition

The Chairperson of the Portfolio Committee on Mineral and Petroleum Resources, Mr Mikateko Mahlaule, has noted the judgment of the Constitutional Court, which has blocked Shell and Impact Africa’s offshore exploration activities along South Africa’s Wild Coast.

Mr Mahlaule said the committee respects the authority of the Constitutional Court and recognises the importance of ensuring that communities are meaningfully consulted and that environmental considerations are properly addressed in decisions relating to the country’s natural resources.

However, he expressed concern about the broader implications of prolonged legal uncertainty and repeated delays for investment, exploration and economic development in South Africa’s offshore petroleum sector.

“The country cannot afford for potentially significant economic opportunities and job creation initiatives to remain permanently at the conceptual stage because of uncertainty around exploration. Exploration is the process through which we establish whether resources exist and whether they can ultimately be developed for the benefit of the economy and the people of South Africa,” said Mr Mahlaule.

He stressed that economic development and environmental protection should not be treated as mutually exclusive objectives. “South Africa needs a regulatory framework that protects our environment and the rights of affected communities, while at the same time providing investors with sufficient certainty to undertake responsible exploration. If uncertainty continues to delay exploration indefinitely, we risk losing investment and opportunities for economic growth, skills development and employment,” he said.

Mr Mahlaule said South Africa cannot afford to fall behind other resource-rich countries in attracting investment into exploration and developing its natural-resource base. The committee will continue to engage with the Department of Mineral and Petroleum Resources on the implications of the judgment and the broader challenges facing offshore exploration, including regulatory certainty and the need to create an environment conducive to responsible investment.