The Minerals Council South Africa has said it will continue to engage extensively with the Department of Mineral and Petroleum Resources (DMPR) on the Mineral Resources Development Bill (MRDB) to ensure the mining regulatory environment is conducive to investment, growth and job creation.

This follows the Minerals Council’s extensive submission on the MRDB ahead of the August 13 deadline.

“The regulatory environment must encourage investment in exploration, mine development, and the sustainability of existing mining operations so that the industry can grow, create jobs, and generate the wealth it is capable of delivering for the benefit of all South Africans,” Minerals Council CEO Mzila Mthenjane said in an August 18 media briefing.

“Our key point of departure in engagements with the DMPR is to have pragmatic conversations that address elements of the MRDB that discourage investment and growth in an industry with untapped potential that is not being realised,” he added.

Mthenjane stressed that it was fundamentally important for the MRDB to create certainty, predictability and a competitive regulatory environment, while eliminating ambiguity in what would become law, to enable the industry to build on past successes.

He further emphasised that the council and its members remained committed to transformation, which could be advanced through a flourishing mining sector that created new opportunities for all stakeholders and newcomers.

“Mining legislation is a key contributor to investment and growth. We are striving to shift investor sentiment to encourage more investment in the country. Security of tenure is an essential component of this. When it comes to the interpretation of the law, the language must be clear.

“For example, the Bill specifies that there is no empowerment requirement for the application of prospecting rights. That must be understood consistently at both national and regional government levels, and clearly reflected in the law. Otherwise, those tasked with applying the law may interpret it differently, creating uncertainty,” Mthenjane said.

The council stated that it had no objection to the inclusion of artisanal mining in the MRDB, provided this was carried out in an environmentally responsible, safe and healthy manner, with clear obligations and responsibilities assigned.

In this regard, the Minerals Council advocated for a fit-for-purpose regulatory framework for artisanal mining.

“We welcome the criminalisation of illegal mining in the MRDB, which addresses long-standing concerns of the Minerals Council. We have recommended more effective penalties to serve as a deterrent in the long run.

“In addition, the streamlining of the appeals process is positive,” the council said in a statement.

Mthenjane added, however, that the proposals would need some refinement to ensure a more effective penalty regime.

The Minerals Council noted that its overarching concern with the MRDB was that, in its current form, it did not encourage investment in the mining industry. It pointed out that the Bill’s reliance on regulations yet to be published for public scrutiny made it impossible to fully engage with the DMPR on several key elements.

Issues that will form the focus of engagement include beneficiation, empowerment, tailings and mine closure provisions – all of which depend heavily on unpublished regulations.

The Minerals Council warned that, as currently framed, these measures could disrupt mining operations and deter potential investment.

“The government must look at incentivising beneficiation, developing transport and water infrastructure and providing cost-competitive electricity, rather than imposing prescriptive obligations and penalising non-compliance with the Act and its regulations,” it said.

It also stressed that the MRDB should build on achievements already made in transformation and empowerment.

“The mining industry has significantly transformed, a point that Mineral and Petroleum Resources Minister Gwede Mantashe has repeatedly noted on public platforms, stating that ours is one of the most transformed sectors in the economy.

"These and other elements will be part of our discussions with the DMPR,” the organisation said.

“The global market for mining capital is highly competitive, and South Africa is not attractive enough for large-scale investment in exploration and mine development, despite our geological endowment.

“The Minerals Council advocates for changes to the MRDB that will encourage investment and grow the mining industry, thereby stimulating the wider economy,” Mthenjane said, adding that the council would not negotiate the Bill in public to give its engagements with the DMPR the best possible chance of success.