THE NATIONAL COUNCIL OF PROVINCES
QUESTION FOR WRITTEN REPLY
418. Mr R A Lees (DA-KZN) to ask the Minister of Trade and Industry:
(1) With reference to the support for the establishment of charcoal
plants in the rural areas as reported to the Select Committee
on Trade and International Relations on the 13 October 2010,
(a) what are the raw materials that are proposed to be used
for the production of charcoal, (b) from where will these raw
materials be sourced, (c) what impact will the proposed
charcoal production have on the environment in terms of air
pollution and(d) what (i) are the details and/or (ii) is the
extent of the support for the charcoal production that is
envisaged and/or proposed.
Response:
(a) The communities in question will use jungle wattle as raw
material for the production of charcoal. The jungle wattle
would otherwise have be removed for environmental reasons.
(b) The raw material is available in woodlots owned by the
communities within the three designated district
municipalities - O R Tambo, Alfred Nzo and Sisonke. Most land
on which the wattle is growing is under the administration of
the traditional leaders. In order to secure the raw
materials, members of the tribal authorities affected are
included to form part of the community charcoal producing
enterprises.
(c) The project will not have a significant impact on the
environment. Due to the size of the envisaged enterprises
being below the EIA threshold as stipulated in the EIA
legislation regulation of 2006. However we are working with
relevant stakeholders to ensure that the project is in line
with Air Quality Legislation Act.
(d) The local municipalities are working closely with SEDA to
mobolise the community and for the establishment and
registration of enterprises. SEDA will provide training on
basic business skills. the dti has also been in talks with
National implementation Fund, who have committed to provide
loans for the implementation of projects. Companies who
indicated an interest in sourcing the charcoal product from
community enterprises have also committed to provide
technical know-how (skills) of producing charcoal.
Whether the proposed production of charcoal will be
sustainable without the support that is being envisaged
and/or proposed; if not, what is the position in this
regard; if so, what is the period of the support as envisaged
and/ or proposed?
Response:
Support envisaged under IPAP II relate predominantly to
assistance with development of business plans and
facilitating access to loan finance. The projects are
expected to be self sufficient once these mechanisms are in
place.