Latest news with #MineralResourcesDevelopmentBill
IOL News
3 days ago
- Business
- IOL News
Criticism of South Africa's new Mineral Resources Bill: A disaster in the making?
Sharp criticisms have emerged over the structure of the new Mineral Resources Bill that was gazetted for public comment last week by Minister of Mineral and Petroleum Resources Gwede Mantashe Image: Reuters Sharp criticisms have emerged over the structure of the new Mineral Resources Bill that was gazetted for public comment last week by Minister of Mineral and Petroleum Resources Gwede Mantashe with the DA on Wednesday saying, "The new minerals bill is a disaster in the making." This comes hot on the heels of the Minerals Council on Tuesday saying its contributions were not incorporated. Mantashe and other government officials hope that the Mineral Resources Development Bill and the Critical Minerals and Metals Strategy blueprint will help to shore up mineral exploration, spearhead SA's production of critical minerals and attract international investment into the mining sector. 'The bill is poorly thought out. It is contradictory and unclear in several places. It grants new powers to the Minister to rule the industry according to his own whim,' said James Lorimer, the DA's spokesperson on mining issues. He further said the bill will 'end the already tottering case for foreign investment' in the mining sector. Among the stipulations that the DA is opposed to is a provision requiring ministerial approval for the change of control of any listed company holding a mining licence. Lorimer also voiced out concerns over a 'vague requirement that certain minerals would have to be made available for local beneficiation' adding that there was no clarity over 'who would do the beneficiation or at what price' mines would have to make the minerals available. Mzila Mthenjane, the CEO of the Minerals Council, said the published bill 'does not reflect inputs' from the grouping of SA's mining sector players. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading 'The draft bill is not altogether optimal,' said Mthenjane, adding that an industry preference seeking that the legislation 'specifically exclude prospecting companies from empowerment' had not been included. 'Exploration is the highest risk part of the mineral value chain and imposes an unnecessary burden on prospectors who must sink every rand into drilling and data interpretation. Yet in this draft bill, none of that is included,' he explained. Lili Nupen, a mining policy expert who founded Johannesburg-based NSDV, told Business Report though that the bill's effectiveness will be hinged on how it is implemented. 'NSDV Law is of the view that the South African mining industry stands to benefit from the implementation of the Mineral Resources Development Bill and the Critical Minerals Strategy, if they are executed effectively and supported by consistent policy implementation,' said Nupen. She added that the Mineral Resources Bill was supposed to be representative of the South African government's recognition of investor concerns and, therefore, should be a mechanism of reforming the legal framework that governs the mining sector to address concerns. 'For example, the alignment of the mining and environmental regulatory timeframes and processes, as well as their acceleration, is directly aimed at addressing current concerns regarding the backlog of the processing and authorisation of mining projects. Similarly, the Critical Minerals Strategy provides much-needed clarity on South Africa's mineral priorities, which could guide investment decisions and support coordinated development efforts.' South Africa, a major mining hub in the region, has identified platinum, manganese, iron ore, coal, and chrome ore as 'high-critical minerals' under the new Critical Minerals and Metals Strategy.
Daily Maverick
3 days ago
- Business
- Daily Maverick
Industry sees red after Mantashe says no BEE for mining exploration, contradicting draft Bill
A new mist of uncertainty has shrouded mining policy just as progress is being made on other fronts such as the looming rollout of the long-awaited mining cadastre to address the applications backlog for mining and prospecting rights and permits. The draft Mineral Resources Development Bill (MRDP) has stirred a hornet's nest in the mining industry and with the ANC's GNU political partner the DA, and its ill-conceived nature was on full display on Wednesday when Minister Gwede Mantashe confusingly said the BEE requirements for exploration were not there and would be removed if they were. 'Now, and in the future, there's no provision for BEE on exploration,' Mantashe, the Minister of Mineral and Petroleum Resources (MPR), said during a media briefing at the conclusion of the AGM for the Minerals Council SA, the main body representing the country's mining industry. That's neither the Minerals Council's reading of the draft Bill nor Daily Maverick's interpretation of it. 'We raised this point over and over in our engagements with the department that the amendments must specifically exclude prospecting companies from empowerment requirements … Yet in this draft Bill, none of that is included,' Minerals Council CEO Mzila Mthenjane said in a statement on Tuesday. The thing about prospecting – or exploration – is that it is an extremely high-risk activity that onerous BEE rules will severely curtail. And without exploration, the South African mining industry has no viable long-term future. Daily Maverick asked Mantashe to clarify this afterwards and he responded by saying: 'If there is a BEE requirement in the Bill for prospecting, it must be removed.' So, the industry's complaints on this front are not falling on deaf ears, though it has raised concerns that its inputs were not included in the draft. And a new mist of uncertainty has shrouded policy just as progress is being made on other fronts such as the looming rollout of the long-awaited mining cadastre to address the applications backlog of mining and prospecting rights and permits. Overall, the industry is not happy with the Bill, which once again moves the goal posts at a time when investors are crying for certainty for a sector that remains crucial for South Africa's low-growth and high-unemployment economy. 'When we ask ourselves this question, does this Bill promote investment and create jobs, we see it has some serious short-comings,' said Paul Dunne, the CEO of Northam Platinum, who was re-elected as president of the Minerals Council SA. 'They are both substantive in nature and technical … Council is a very considered, professional advocacy group. We represent at least 99% of the mining industry in this country and our submission [on the draft Bill] will be made public when the right time comes, and we will engage very, very robustly with the department and the minister on this issue,' he said. The good-natured Dunne added: 'The minister knows us very well. We are very tough. And minister, we are coming.' That raised a chuckle from the audience and Mantashe, but it is no laughing matter – except for lawyers, who are going to giggle all the way to the bank. The draft Bill raises the almost certain prospect of arduous and time-consuming legal and court battles – another obstacle to the investment that the mining sector and wider South African economy desperately need to reach faster levels of growth and job creation. It has also raised hackles in the GNU, which is supposed to be the ANC's main governing partner. One bone of contention is embedding the Mining Charter into the legal framework, which could once again unleash the 'once empowered, always empowered' debate which the industry has already won in court. But fresh legal scraps could loom on this front. This played out in the courts when Gupta stooge Mosebenzi Zwane was the minister in charge of mining, and the term refers to the industry's contention that once a company reached a required BEE ownership threshold that should be set in stone even if black shareholders decided to sell their stakes – which is the point of owning shares. The government at the time held that mining companies needed to endlessly keep topping up BEE stakes, a state of affairs that would dilute value and repel foreign as well as domestic investment. 'By expressly including the Mining Charter as law and not simply policy, the Bill allows for the rapid overturning of t'once empowered, always empowered', opening the door to the need for constant injections of new BEE investors, a feature which would on its own make investing a lossmaking prospect,' MP James Lorimer, the DA spokesperson on Minerals and Petroleum Resources, said in a statement. 'The Bill is poorly thought out. It is contradictory and unclear in several places. It grants new powers to the Minister to rule the industry according to his own whim.' What this means More policy confusion and uncertainty at a time when South Africa needs both to extract wealth, investment and job creation from its rich minerals endowment. It will also test the GNU and likely trigger a tsunami of legal challenges for South Africa's already stretched court system. The ANC is acting like it has a two-thirds majority in Parliament on this front and has yet to be pulled back to Earth by the laws of political gravity. Mantashe on Wednesday reminded the industry of its racist past, and that is no bad thing – in an age when US President Donald Trump is parroting fascist-inspired lies about 'white genocide', hard historical truths need to be confronted head-on. The South African mining industry was the economic bedrock of apartheid, subjecting an overwhelmingly black migrant labour force to ruthless exploitation. But the times are changing and the industry – partly in response to government regulation and union demands but also wider concerns among investors foreign and domestic – has made strides from the indignities of the apartheid past on a range of fronts, including ownership, wages, communities, health and safety. BEE as a mantra has not delivered a utopia while enriching a relatively small elite, and it is also starting to look like a fossilised relic in an age when – despite the Trump administration's efforts to turn the tide – capital is largely looking for kinder, gentler returns. The Bill, for now, is not law and open to public comment. Break out the popcorn for the fireworks. DM
Bloomberg
4 days ago
- Business
- Bloomberg
South Africa Mining Group Says Advice on Draft Law Ignored
South Africa 's mining lobby group said new draft legislation to regulate the sector has failed to include its recommendations, especially on Black ownership and advancement rules. The Mineral Resources Development Bill, opened to public feedback last week, 'does not reflect the inputs' of the Minerals Council South Africa, the industry group said in a statement on Tuesday. The government says the proposed law will improve regulatory certainty and streamline administrative processes.
IOL News
23-05-2025
- Business
- IOL News
Investor uncertainty looms over South Africa's mining sector despite new regulations
Minister of Minerals ad Petroleum Resources, Gwede Mantashe, on Wednesday welcomed Cabinet's approval of South Africa's Critical Minerals & Metals Strategy, as well as the approval for the publication of the Mineral Resources Development Bill (MRDB) of 2025 for public comments. Image: GCIS South Africa's mining sector remains engulfed in investor uncertainty despite the recent gazetting of the Draft Minerals Resources Development Bill of 2025. The government aims to enhance mineral exploration and bolster international investment through this initiative, but experts have voiced concerns about the existing complexity and lack of clarity that may hinder progress. South Africa, a major mining hub in the region, has identified platinum, manganese, iron ore, coal, and chrome ore as 'high-critical minerals' under the new Critical Minerals and Metals Strategy. It has also classified commodities such as gold, vanadium, palladium, rhodium, and rare earth elements as minerals with moderate to high criticality while copper, cobalt, lithium, graphite, nickel, titanium, phosphate, fluorspar, zirconium, uranium, and aluminium were identified as minerals with moderate criticality. While the Minerals Council on Wednesday said it was in the process of reviewing the new Bill and the new Critical Minerals Strategy, South African mining experts have said there was still investor uncertainty pervading the industry. 'There's still a lot of investor uncertainty, which will only likely be cleared when the actual regulations come,' independent mining policy expert, Sandra Gore, told Business Report on Thursday. 'The mines are highly burdened with obtaining multiple permits across the board and, you know, are often duplicate the approvals needed from separate departments.' Under the proposed Bill, local beneficiation will be spearheaded by the Minister of Minerals and Petroleum Resources. This was likely to cause some tension with some investors given the large amounts of capital required to set up local beneficiation facilities. Gore said the issue of local beneficiation was a double edged sword as there was also need for local empowerment and upliftment of communities. 'You don't want the government hauling you in a free markets as to how much you must beneficiate locally,' said Gore. 'But at the same time, you don't want your minerals going overseas to international smelters and this has been also just delegated to regulation levels, so there's no answers on that yet.' Other experts explained that the new amendments included provisions that aimed to promote local beneficiation by requiring mineral producers to make minerals available for local beneficiation, which in the current state 'is vague and provides too much administrative discretion'. Partners and consultants at Webber Wentzel said Minister Gwede Mantashe's proposed amendments had dropped references to petroleum and the regulation of the exploration and production of petroleum products. This was in alignment with the Upstream Resources Development Act 23 of 2024, which, although not yet in force, aims to provide separate regulation of the petroleum industry. 'The Bill includes a somewhat unhelpful definition of 'controlling interest', requiring ministerial consent in terms of section 11 for a change of control in listed and unlisted companies,' said Jonathan Veeran and other experts at Webber Wentzel in a note. 'This requirement could prove impractical for listed companies as stock market transactions are fluid and subject to their own rules and regulations, potentially leading to compliance conflicts.' They further noted that to address tailing dumps and associated issues that had resulted in the Jagersfontein disaster the new mining Bill was introducing the concept of 'historic residue stockpiles'. Under this, transitional provisions give mine owners two years to either include the dump/stockpile in its mine works programme by way of an amendment in terms of section 102 or apply for a right insofar as the material is situated outside an existing mining area. Failure to apply for a right will result in the dump/stockpile reverting to the State. To close the regulatory loopholes associated with old mine dumps, similar amendments have been proposed to the National Environmental Management Act (NEMA). Visit:
The Star
22-05-2025
- Business
- The Star
South Africa's mining sector hails new critical minerals strategy as key to investment, growth
JOHANNESBURG, May 22 (Xinhua) -- South Africa's mining industry has welcomed the government's newly launched Critical Minerals Strategy and the Cabinet's approval of the Mineral Resources Development Bill (MRDB), calling them major steps toward boosting investment, enhancing local value addition, and strengthening regional industrialization. South African Minister of Mineral and Petroleum Resources Gwede Mantashe announced the approval of the two policy documents on Tuesday, noting that they are critical for ensuring policy certainty and unlocking South Africa's potential in the global minerals market. "The approval of these two policy documents marks a major milestone in our concerted efforts that are aimed at ensuring policy and regulatory certainty, as well as maximizing the country's potential in the global market for minerals," Mantashe said. He noted that while the term "critical minerals" is widely used internationally, definitions vary based on each country's strategic priorities -- including economic growth, technological development, supply chain security, and geopolitical interests. For South Africa, the strategy prioritizes minerals such as platinum, manganese, iron ore, coal, and chrome ore, which are identified for their potential to drive economic and industrial development. At the heart of the new strategy is a push to "foster" regional cooperation, promote local beneficiation, build resilient value chains, and attract investment in exploration and research. Mantashe emphasized that the aim is not just national growth but broader regional industrialization through a more strategic and localized approach to mineral resources. The strategy has been positively received by the mining industry. The Minerals Council South Africa, the sector's main representative body, confirmed that it was consulted during the drafting process and welcomed the government's inclusive approach. Independent analyst and businessman Sandile Swana described the policy shift as a "game changer" for the mining sector. "These new strategies and policies that have been issued by Gwede Mantashe and the Cabinet do change the game," he told Xinhua in a phone interview on Thursday. Swana highlighted the significance of this shift for both economic and geopolitical security, particularly in an era of increasing global trade tensions. "We've seen with the international trade wars that are in progress at the moment that during times of sensitivity, critical minerals are weaponized," he said. "That means that even in considering your security, you need to know what strategic minerals come out of your country, even your region." "I think South Africa wants to lead the Southern African Development Community (SADC) region into knowing how to manage the strategic minerals. It means that when these strategic minerals are sold, they are more likely in the future to be sold in a value-added form," he added. The new MRDB, expected to be published for public comment soon, is seen as an essential complement to the Critical Minerals Strategy, aimed at streamlining regulatory frameworks and encouraging sustainable development in the sector.
