SA created 159 new mines in five years, creating over 15,000 jobs
The establishment of new mines follows a structured application process overseen by the Department of Mineral and Petroleum Resources.
South Africa has established 159 new mining operations over the past five years, creating over 15 000 direct jobs according to Minister of Mineral and Petroleum Resources, Gwede Mantashe.
The information was revealed in response to parliamentary questions posed by MK Party MP Mzwanele Manyi regarding the state of mining development in the country.
'159 mines were established over the past five years,' Mantashe confirmed, adding that '15,131 jobs were created through the granting of the specified mining rights.'
New mining operations and registration process
The establishment of new mines follows a structured application process overseen by the Department of Mineral and Petroleum Resources.
To improve this process, the department has recently procured 'a streamlined online licensing system to improve transparency and efficiency in application processes,' Mantashe explained in his response to EFF MP Nqobile Matilda Mhlongo.
This new system forms part of broader efforts to 'improve regulatory certainty and stakeholder engagement, creating a more attractive environment for both local and international investors,' the minister added.
Mantashe said the department ensures sustainable mining practices through strict regulatory oversight.
'The department ensures that mining activities are conducted sustainably by applying the principles of the National Environmental Management Act (Nema) when granting mining licences.'
He added that each mining operation must comply with environmental regulations before receiving approval.
'Each mining right is accompanied by an approved Environmental Authorization, which outlines measures to address potential ecosystem disturbances and biodiversity loss,' the minister explained.
Moreover, he stated that the department 'also conducts regular inspections to monitor compliance.'
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Community development through mining
Mining companies operating in South Africa are required to contribute to local development as part of their operating agreements.
According to Mantashe, 'the Department ensures that the development of mining balances social, economic and environmental sustainability'.
This approach is formalised through mandatory development plans.
'Each approved mining licence includes a Social and Labour Plan (SLP), outlining the company's development commitments,' he noted.
These plans have resulted in tangible benefits, with 'notable projects including the construction of the Malekana Steel Bridge in Limpopo and the completion of JS Skenjana Secondary School in the Eastern Cape'.
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Mineral beneficiation shows mixed progress
The department has implemented legislation to encourage local processing of minerals rather than simply exporting raw materials.
In his response to Manyi, Mantashe highlighted that 'The department has implemented the Precious Metals Act and the Diamonds Act both of which have provisions for supporting domestic beneficiation by availing of precious metals and diamonds for domestic beneficiation through the State Diamond Trader (SDT) and South African Diamonds and Precious Metals Regulator (SADPMR).'
Results from these beneficiation initiatives have been mixed so far.
'Between 2022 and 2023, gold jewellery fabrication declined from 1482kg to 1030kg,' Mantashe reported.
However, other minerals showed improvement: 'Domestic platinum jewellery fabrication grew from 50kg to 121kg in 2022, whilst diamonds beneficiation increased from 223,005 in 2022 to 234,109 in 2023.'
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Tackling illegal mining challenges
Illegal mining remains a significant challenge for South Africa's mineral sector. In addressing Mhlongo's questions about this issue, Mantashe said the department had come up with a comprehensive approach involving multiple government agencies.
'An Interdepartmental Task Team made up of the DMRE, Saps, Home Affairs, Justice and Sars is working together to identify, disrupt, and prosecute illegal mining activities,' the minister explained.
The department's strategy includes several key components to address the problem:
'Efforts have been made to seal off and rehabilitate derelict mines, cutting off access for illegal miners and addressing safety and environmental risks,' Mantashe noted.
Additionally, the department is 'working with the Reserve Bank and Sars to crack down on the illicit trade of minerals like gold and chrome to protect the formal economy.'
To strengthen enforcement capabilities, the Department has deployed 'more trained mining inspectors to illegal mining hotspots, working in coordination with law enforcement agencies.'
Legal frameworks are also being reinforced, with 'revisions to the MPRDA underway to increase penalties and classify illegal mining as a serious economic crime to enhance enforcement powers.'
Modern technology is being incorporated into these efforts as well.
'Drones and satellite surveillance are being piloted to monitor illegal activity, supported by intelligence-led operations that have resulted in successful interventions and arrests,' according to the minister.
Community engagement forms another important element of the strategy, with 'awareness campaigns launched to educate communities about the risks of illegal mining, while promoting legal and sustainable small-scale mining alternatives.'
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