Tuesday 19 August 2025 - 04:58

Date: 18 August 2025 , 23:18

News ID: 12326

NEWS SERVICE: MINES and MINERALS

Salt

South Africa mining lobby gives draft law feedback with concerns

me-metals: South Africa’s mining lobby group said it submitted proposed changes to draft legislation for the sector, but is concerned about the impact of additional regulation that’s yet to be published.

According to me-metals cited from mining.com, Minerals Council South Africa reacted angrily to the draft bill when it first appeared in May, complaining that its recommendations had been ignored. The government then partially backtracked when it clarified exploration activities would be exempt from having to meet minimum Black-ownership rules.

The council sent detailed feedback to the Department of Mineral and Petroleum Resources, or DMPR, ahead of an Aug 13. deadline, chief executive officer Mzila Mthenjane told reporters on Monday. The body’s members include large miners like Sibanye Stillwater Ltd., Kumba Iron Ore Ltd. and Thungela Resources Ltd.

South Africa is a major producer of gold, iron ore, coal and platinum-group metals, and is the continent’s top exporter of mineral products. The government introduced a mining charter in 2004 to distribute the benefits from mining more widely among citizens to help repair the economic impact of racial discrimination during apartheid.

The nation’s gold output – which for decades was the world’s largest — has shrunk by more than 70% in the past 20 years. PGM production is also expected to decline in the coming years, though more modestly. A collapse in exploration investment, which is the “lifeblood of future mining activity,” is one reason behind the drop-off, according to Mthenjane.

Area of concern

Key sections of the draft bill concerning requirements for local processing and Black economic empowerment depend on ministerial regulations that the council hasn’t yet seen and wasn’t able to comment on, according to the organization’s head of legal, Ursula Brown.

“The uncertainty that emanates from that because of the lack of clarity is obviously of concern,” she said.

The mining sector accounted for about 6% of South Africa’s gross domestic product and 45% of its exports by value last year, and currently employs 465,000 people, according to the Minerals Council.

The Minerals Council said it has “no objection” to the legislation’s plan to formalize so-called artisanal mining “provided it can be done in an environmentally responsible, safe and healthy manner, with clear identifiable obligations and responsibilities.”

South African farm lobby AgriSA has opposed provisions it said would allow small-scale mining operations to access private agricultural land and called for the withdrawal of the bill.

The DMPR is now expected to prepare a revised draft which will require parliamentary approval.

source: mining.com

South African mining Mine PGM