Leaning on the theme of the Mining Indaba, Stronger Together, the Minister emphasised the need for not only governments to work together, but the need for governments to partner with the private sector.
The Government has several challenges to overcome in stabilising, and then growing, the South African mining sector, and has over the years set several strategies to achieve the elusive growth in this sector. One of the greatest challenges remains implementing a capable, workable online cadastre system, which will unlock many benefits along the value chain, including access to data that will allow the use of AI. Although promised since 2022, the cadastre system is only now in piloting stage, with a phased roll-out underway in selected provinces. The use of data from the cadastre system will enable more accurate exploration data, and with visibility we hope confidence will rise. If the system works efficiently and transparently, investment should hopefully follow.
The Minister did not mention the upcoming revised Mineral Resources Development Amendment Bill. However, from our insights, we are hopeful to see the revised Bill (i) clarify long-standing grey areas, such as around residue stockpiles and beneficiation, (ii) prescribe time period for processing of applications, and (iii) alignment with matters regulated by other laws, such as BEE, labour relations, environmental matters and health and safety. The revised Bill is expected to be published in the first quarter of this year. Government has been receptive of stakeholder comments and therefore we expect a Bill that encourages partnership amongst the industry players, through clear and transparent regulation.
The Minister’s speech was focussed on the responsibility for African countries to collaborate and partner together, to protect their mineral resources. The need for exploration was emphasised, with a call for the private sector to invest in the already existing ZAR2 billion exploration fund for junior miners. He mentioned that there have been 358 prospecting rights and 32 mining rights granted in the past 12 months, some of which being attributed to funds from the exploration fund.
The invitation from the Minister is clear: the private sector should invest in the South African mining sector. We welcome this message.
Written by Ziyanda Ntshona, Partner, Herbert Smith Freehills Kramer