Improved sentiment toward South Africa under the new Government of National Unity and successes in the state’s partnership with business to urgently address the country’s damaging electricity crisis are contributing to rebuilding the growth agenda for the mining industry, said Mzila Mthenjane, CEO of the Minerals Council South Africa.
Speaking at the 22nd Africa Down Under mining and exploration conference in Perth Australia, he said the seventh administration’s commitment to prioritising inclusive growth and job creation, reducing poverty, tackling the high cost of living and building a capable, ethical and developmental state has bolstered business and investor sentiments, particularly as key structural reforms are enacted.
The inclusion of the private sector to assist the government to stabilise and restore electricity generation and state-owned transport logistics services to nameplate capacities, and to tackle crime and corruption, are further reasons for confidence that there is more upside than downside for South Africa’s mining industry.
“As the South African mining industry, we are gearing for growth. We will continue to capitalise on the positive post-election sentiment as we see accelerating structural reforms and growing private sector participation in key areas that impact the economy. The government’s mooted infrastructure investment drive will create demand for minerals, which is also positive,” Mthenjane added.
The Minerals Council and the Department of Mineral Resources & Energy have started engagements on the department’s review of the Mineral and Petroleum Resources Development Act. “The work we are doing with the department on the review has been very encouraging,” said Mthenjane.
The department will implement its customised online mining cadastre by June 2025 as the portal through which mining and prospecting rights are managed, bringing South Africa in line with other mining jurisdictions with their modern, efficient and transparent cadastres. The new system will reduce the backlog of thousands of unprocessed mineral right applications, Mineral Resources Minister Gwede Mantashe told delegates at Africa Down Under.
The development of a vibrant exploration sector through an efficiently managed mineral rights system and investment-friendly regulations are fundamental building blocks for the future of a sustainable mining industry, which will serve as a catalyst for other sectors of the economy to invest and grow employment, Mthenjane said.
“I think the online mining cadastre will be a huge game-changer for our sector and we’ll see a lot more exploration interest in South Africa, which is well endowed with minerals.”
Reforms in energy, logistics, crime and water coupled with better managed and functional municipalities will lead to improved confidence among businesses, consumers and investors, leading to an economic growth rate higher than the population growth rate and result in skills development, quality jobs and sustainable transformation of the economy, he concluded.
