Latest news with #MineralsCouncilSouthAfrica
IOL News
a day ago
- Business
- IOL News
Mining industry raises concerns over impact of proposed legislation on investment and jobs
The Minerals Council, whose members account for 90% of South Africa's annual mineral production, lodged its extensive Board-approved submission on the Bill within the 13 August deadline. Image: Itumeleng English / Independent Newspapers. The Minerals Council South Africa has raised concerns regarding the recently published Mineral Resources Development Bill, arguing it fails to foster an environment conducive to investment and job creation. The draft Mineral Resources Development Bill, published for public comment in May until 13 August, aims to transform South Africa's mining industry by strengthening regulations, promoting inclusive growth, and enhancing the legal governance of mineral exploitation. The Bill addresses various aspects of the mining sector, including artisanal and small-scale mining, transfer of mining rights, and empowerment requirements. However, concerns remain regarding the impact on agricultural land, investor confidence, and the potential for unintended consequences. Speaking during a media briefing on Monday, Minerals Council's CEO Mzila Mthenjane emphasised that the bill, in its current form, cannot drive the necessary transformation and growth that South Africa's mining sector requires. Mthenjane said it was of fundamental importance for the Minerals Council that the Bill creates certainty, predictability, and a competitive regulatory environment, while eliminating ambiguity in what will become the Act to ensure we build on the successes we have had to date. 'The regulatory environment must be conducive to encouraging investment in exploration, mine development and sustain 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,' Mthenjane said. 'Our key point of departure in engagements with the Department is to have pragmatic conversations that address elements of the Bill that discourage investment and growth of the industry which we all agree has untapped potential that is not being realised.' 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 Minerals Council, whose members account for 90% of South Africa's annual mineral production, lodged its extensive Board-approved submission on the Bill within the 13 August deadline. Mthenjane said they will continue to engage with the Department of Minerals and Petroleum Resources on the Bill, adding that they made a submission on time to the department outlining the areas of interest for their members. 'We are positive about our engagement with the department and we are confident they will consider our submissions, along with contributions from other stakeholders, which call for a regulatory environment that is conducive to encouraging investment in exploration, mine development, and also to sustain existing mine operations,' he said. The need for regulatory clarity is compounded by issues surrounding ministerial discretion, which has previously raised eyebrows. The Council called for a transparent and predictable regulatory framework that can rebuild trust between the mining industry and the department. One of the primary concerns identified relates to the empowerment provisions embedded in the upcoming bill, which, as of yet, have not been fully revealed through regulations. While industry officials acknowledge the intent to clarify these provisions by late June, concrete comments on their implications remain elusive. The removal of requirements for empowerment during the prospecting phase might pave the way for a more inclusive mining environment, yet clarity is crucial for stakeholders to fully grasp their operational impact. Ursula Brown, head of legal at the Council, said one of the primary concerns identified related to the empowerment provisions embedded in the Bill, which, as of yet, have not been fully revealed through regulations. Brown said the removal of requirements for empowerment during the prospecting phase might pave the way for a more inclusive mining environment, yet clarity was crucial for stakeholders to fully grasp their operational impact.
IOL News
2 days ago
- Business
- IOL News
Minerals Council urges government to create supportive framework for mining investment
A miner works several km underground in a gold mine on Gauteng's far West Rand. Image: Nicola Mawson | IOL The Minerals Council South Africa has highlighted the need for legislation that supports investment, growth, and job creation in the country's mining sector, following its submission on the Mineral Resources Development Bill by the August 13 deadline. Speaking at a media briefing, the various representatives of the council, which represents 70 mining companies responsible for more than 90% of South Africa's mineral sales, said the proposed bill should provide certainty and predictability for investors. 'The regulatory environment must be conducive to encouraging investment in exploration, mine development and sustain 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,' said Mzila Mthenjane, CEO of the Minerals Council. The Mining Affected Communities United in Action has expressed concern over the Bill betraying the transformation objectives fought for during the Liberation Struggle. The organisation said that, instead of advancing democratic participation and justice, the amendments entrench the power of mining companies and marginalise the voices of communities. Clear definitions, consistent administration, and coordinated engagement between government departments were flagged as key to fostering confidence in the sector by the council. Concerns were raised over declining exploration expenditure, pointing to South Africa's low ranking in investment attractiveness, as measured by the Fraser Institute. It stressed the need for a legislative framework that encourages global competitiveness and attracts investment, which in turn could boost job creation and economic growth. To address this, it has provided specific recommendations that includes clarifying the empowerment regime, publishing incentives for infrastructure development, streamlining monitoring and environmental obligations, and addressing illegal mining while ensuring compliance with health and safety standards. 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 Minerals Council said it would continue extensive engagement with the Department of Mineral Resources to refine the bill, noting that the process would involve multiple stakeholders and take time. The council emphasised that negotiations would remain internal, with a focus on constructive engagement rather than public disputes. Key elements of the Bill that will be the focus of the Minerals Council engagement with the department include beneficiation, empowerment, tailings, and mine closure provisions, which rely heavily on unpublished regulations and, in their current form are potentially disruptive to mining operations and potential investment. The Council also called for the publication of the socio-economic impact assessment conducted for the bill, describing it as critical for transparency and informed public engagement. While acknowledging past challenges in legislative processes, the council said the current political climate presents an opportunity to advance policies that support investment and growth. It stressed that a collaborative approach between industry and government would be key to achieving a favourable outcome. The mining sector remains a significant contributor to gross domestic product (GDP) and employment, despite recent declines. A supportive legislative framework can unlock further exploration, development, and job creation, it indicated. In 2024, the mining sector contributed 6% to South Africa's total nominal GDP, according to African Business. This translates to approximately R100 billion in national revenue, and employing almost half-a-million people. The Minerals Council will continue submitting detailed inputs and engaging with stakeholders to ensure the final bill strengthens the sector while promoting transformation and economic growth. IOL
IOL News
31-07-2025
- Business
- IOL News
Job losses in South Africa's mining sector: A reflection of ongoing challenges
The refining and smelting of gold to produce bullion bars. Gold mining employment in South Africa has fallen steadlly by some 135 000 since 1994. Image: Supplied Mining sector employment into the first quarter of this year has broadly followed the same downward trends as last year, where there were job losses among platinum group metals (PGM), diamond, and iron ore mining companies. This was according to the Minerals Council South Africa (MCSA), the data from which showed there were 9 493 job losses in the PGM sector last year, 1 286 job losses in iron ore, while diamond mining employment was down by 1 047. The MCSA's 70 members represent 90% of South African mineral production by value. By the end of 2024, there were 468 898 employees in the mining sector. These three mining sectors measured by the MCSA with job losses were also those that were most affected by lower commodity prices last year, while South Africa's iron ore sector exports also suffered due to rail infrastructure problems. Interestingly, employment in South Africa's gold mining sector fell by 2 296 employees, despite a high gold price that peaked at an all-time record last October, and the decline was reflective of broader structural problems, an MCSA spokesperson said. Last year, coal sector employment increased by 2 213, employment in manganese mining was up by 416, while employment in chrome mining increased by 3 972. An estimated 5 744 jobs were lost in total in 2024. 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 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. Next Stay Close ✕ This was reflective of the need for a better regulatory and policy framework that would encourage further investment in mining, something that was still not evident in the Draft Mineral Resources Bill in its current form, an MCSA spokesperson said. The MCSA said in a presentation to the Parliamentary Committee on Minerals and Petroleum Resources earlier this month that real mining GDP has declined in eight of the last 13 quarters - the standard definition of a technical recession is two consecutive quarters of GDP decline. Overall mining production declined by almost 5% year-on-year, in real terms, in the first quarter of 2025, impacted also by heavy rains in January and February. The MCSA told the committee that due to several binding constraints in the industry: electricity, poor rail and port performance, among others, production in the local mining sector was unable to respond to commodity price windfalls. Total mining employment has declined by about 135 000 since 1994, with the decline reflecting mainly job losses in the gold sector, due to structural factors such as mature mines, declining reserves, and cost pressures. BUSINESS REPORT
Bloomberg
27-05-2025
- 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.
Dubai Eye
24-05-2025
- General
- Dubai Eye
South Africa rescues all 260 miners stuck underground alive
Rescuers on Friday pulled out all 260 mine workers who had been stuck for more than 24 hours in an underground shaft in South Africa, the mine's operator said. The miners were trapped underground on Thursday at the Kloof gold mine, 60 kilometres west of Johannesburg, after a hoist used to access the shaft was damaged in an accident, the mining company Sibanye-Stillwater said. The first phase of the rescue brought 79 people to the surface by 1:30 pm (1530 GST) while the rest were rescued six hours later, it said in a statement. "At no point was there any risk of injury to employees during the incident," it said. A decision had been made against using the emergency escape routes which would have involved the miners walking longer distances, it added. The National Union of Mineworkers said the incident happened around 10:00 am (1200 GST) on Thursday. It expressed concern for the miners who had been "underground for almost 20 hours". Mining employs hundreds of thousands of people in South Africa, which is the biggest exporter of platinum and a major exporter of gold, diamonds, coal and other raw materials. Dozens of mineworkers are killed each year, though the numbers have been falling as safety standards have been stepped up over the past two decades. According to industry group Minerals Council South Africa, 42 miners died in 2024, compared to 55 the previous year.
