DMRE feasibility studies are required to be developed and presented to the The Department of Mineral Resources and Energy (DMRE) to ensure regulatory compliance. Feasibility studies serve as a guideline or framework for the various decision making processes and may be composed to attain a wholesale or retail license. A feasibility study is a preliminary exploration of a proposed project or undertaking to determine its merits and viability. Feasibility studies aim to provide an independent assessment that examines all aspects of a proposed project, including the technical, economic, financial, legal, and environmental considerations. The document needs to be practical, comprehensive, realistic and promote fuel wholesale or retail.
Feasibility studies outline the market need, identifies infrastructure requirements, determines the project costs, includes a financial analysis to determine the financial feasibility of the proposed study site to determine if the desired return on investments could be reached. The document covers the identification of regulatory limitation, the projection of fuel demand and prices, and the assessment of financial and economic feasibility of the fuel project.
The Main Objectives of DMRE Feasibility Studies are to:
- Provide evidence of the suitability of the proposed site for the intended development; as well as to
- Determine the market feasibility – determine and estimate the potential market for the products and services that the proposed development is intended to provide.
The Department of Mineral Resources and Energy (DMRE) is mandated to ensure the transparent and efficient regulation of South Africa’s mineral resources and minerals industry. The Department does this to secure and sustain the provision of energy in support of socio-economic development. The DMRE regulates, transforms and promotes the minerals and energy sectors, providing sustainable and affordable energy for growth and development. The Department also ensures that all South Africans derive sustainable benefit from the country’s mineral wealth. Feasibility studies form a part of the relevant documentation to be submitted to the DMRE to obtain the necessary licenses.
Feasibility studies are important in this aspect because it outline the market need, identifies infrastructure requirements, determines the project costs, and includes a financial analysis to determine the financial feasibility of the proposed study site. The document covers the identification of regulatory limitation, the projection of fuel demand and prices, and the assessment of financial and economic feasibility of the fuel project.
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