When considering the development of new mines and the flurry of exploration in Africa and around the world, the South African mining sector is “simply not competitive or attractive”, says Minerals Council South Africa CEO Mzila Mthenjane.

“This is because of the state of our infrastructure, which is essential to the competitive performance and growth of the mining industry, as well as our regulatory environment.”

Addressing a media conference at the Investing In African Mining Indaba 2025, held in Cape Town this week, Mthenjane said South Africa had to urgently remedy its process of granting licences for mineral and prospecting rights.

“The creation of a one-stop shop for investors to expedite exploration and mining projects is critical.

“We are in an investment competition globally. We need to be able to work together as industry, government, organised labour and civil society in the right combinations to enable the speed we need to grow the mining industry.

“It is all about speed and how quickly companies can embark on exploration, prove up a viable reserve, and be clear on stable, predictable and business-friendly regulations to develop a new mine.”

“As the Minerals Council, we work with junior companies that make up half our membership, and we spend a lot of time navigating the legislative environment, which is hugely frustrating for junior companies and investors,” added Mthenjane.

“Unfortunately, this frustration has seen the withdrawal of some investors in some instances.”

Mthenjane noted that the mining industry required a regulatory environment that encouraged local and foreign investment into the prospecting sector, which for the past four years had attracted less than 1% of global exploration spending.

He also called for a process within the Department of Mineral and Petroleum Resources (DMPR), much like Operation Vulindlela, which would focus attention on three or four key constraints on investment and growth in the mining industry – “and to collaboratively work on fixing them as a matter of urgency”.

Operation Vulindlela is a joint initiative of South Africa’s Presidency and National Treasury to accelerate the implementation of structural reforms and support economic recovery.

The Minerals Council had already held talks with the DMPR about the backlog of unprocessed mineral rights applications, the development and implementation of a modern, transparent mining cadastre to efficiently manage mineral and prospecting rights, as well as the review of the Mineral and Petroleum Resources Development Act.

The department indicated that it would release its review of the Act before the end of March this year, and implement the cadastre by the middle of the year.

The ultimate goal of the South African mining industry was to grow, noted Mthenjane, and to make a meaningful contribution to the country’s wellbeing.