Leaning on the theme of the Mining Indaba, “Stronger Together”, Minister of Mineral & Petroleum Resources Gwede Mantashe 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 that will unlock many benefits along the value chain, including access to data that will allow the use of artificial intelligence.
Although promised since 2022, the cadastre system is only now in piloting stage, with a phased rollout 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 clarify longstanding grey areas such as around residue stockpiles and beneficiation; prescribe time period for processing of applications; and alignment with matters regulated by other laws such as B-BBEE, labour relations, environmental matters and health and safety.
The revised bill is expected to be published in the first quarter of this year. The government has been receptive of stakeholder comments and therefore we expect a bill that encourages partnership among the industry players, through clear and transparent regulation.
The minister’s speech was focused 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 R2-billion Exploration Fund for junior miners. He mentioned 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 Minister Mantashe is clear: The private sector should invest in the South African mining sector. We welcome this message.
Ziyanda Ntshona
Partner: Herbert Smith Freehills Kramer