/ 22 May 1997

State energy sector in for changes

THURSDAY, 10.30AM

MINERAL and Energy Affairs Minister on Wednesday detailed far-reaching plans to restructure the energy, mining and petroleum industries, including consolidating Central Energy Fund companies and other state assets into a major public energy company listed on the Johannesburg Stock Exchenge.

In his maiden budget speech to Parliament, Maduna said the new energy company will be “structured out of the existing assets of the Central Energy Fund and government-owned … assets currently controlled or managed by state corporations”, such as the Industrial Development Corporation’s Sasol shares and Transnet’s Petronet division.

Maduna said government will retain a controlling stake in the enterprise, which is intended to have responsibility for formulating “an integrated pan-African energy strategy” and developing African partnerships. Maduna said the plan will increase competition in the sector and promote black economic empowerment.