The private sector must continue working with government and strengthen public–private partnerships to not only fortify the mining sector and, consequently, the country’s economy, but also enhance the mining sector’s attractiveness to investors, says ENS mining practice head Ntsiki Adonisi.

Increased investment in mining will inevitably require the resources of the public and private sector, and government must work on initiatives and strategies to address several issues impeding South Africa’s attractiveness as a mining investment destination.

“We need to look at tax breaks for the exploration sector, as well as develop ways of mitigating port and transport inefficiencies, including cable theft and infrastructure decay,” she adds.

Some other challenges facing the industry include the effective enforcement of laws and the ever-increasing cost of energy.

“Capacity constraints manifest in relation to officials servicing the mining industry, and administrative inefficiencies resulting in backlogs in processing applications, as well as long delays in issuing mining titles and environment-related authorisations,” says ENS senior mining associate Zinzi Lawrence.

However, the forthcoming new mining cadastral system is eagerly awaited by mining companies, as it will, among other factors, provide transparency regarding South Africa’s mining titles and map the country’s mineral resources.

The system is expected to be implemented in June 2025, Lawrence adds.

Keep it Going

To ensure the sustainability of the mining sector, future-proofing plans and strategies are essential, states Adonisi.

For example, the transition to a low-carbon economy not only poses a major threat to economies and livelihoods but also poses a significant challenge to mining companies to adopt environmentally sustainable methods of mining, even more so given the predicted surge in demand for critical minerals.

The concept of future-proofing, adds Adonisi, goes beyond being “a mere buzzword”, demanding a focus on sustainable practices. This means mining operations should involve all stakeholders and embrace new technologies while disregarding outdated practices to facilitate a more sustainable approach.

Such an approach will result in mines becoming drivers of a greener future through initiatives such as “green mining” and reaching net-zero carbon emissions, she enthuses.

“It is important because it acknowledges a shared responsibility between all stakeholders. Most mining companies in the South African context have already embraced this concept of sustainability, which is deeply entrenched in our laws,” she explains.

Host communities endure the most significant negative effects of mining activities throughout the operational phase and after closure. She emphasises the importance of consistently involving these communities in a meaningful way, noting that this engagement is often essential for obtaining a social licence to mine.

From the perspective of mines’ host communities, Adonisi adds that future-proofing holds “immense potential” and requires mines to include and incorporate their views from project inception to mine closure.

ENS will participate in this year’s Investing in African Mining Indaba and looks forward to positively contributing towards discussions between key stakeholders.

“Our aim is to help position Africa as a leading producer and beneficiator of critical minerals by seizing opportunities that will establish continent-wide agreements on how to future-proof mineral resources,” Adonisi concludes.