Latest news with #MzilaMthenjane
Daily Maverick
18 hours ago
- Business
- Daily Maverick
SA mining sector burnishes transformation credentials as battle looms over draft bill
The mining industry is arming itself with facts before what may be a long slog as it pushes for changes in the draft Mineral Resources Development Bill. South Africa's mining sector is digging in for lengthy talks with the Department of Mineral Resources and Energy over the contentious draft Mineral Resources Development Bill (MRDP). The Minerals Council SA, the main umbrella group for the industry, maintains that the bill has many shortcomings that will discourage investment and job creation. The council lodged an extensive submission on the draft bill before the 13 August 2025 deadline. 'It is 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 council said in a statement on Monday, 18 August 2025. At a media briefing, Mzila Mthenjane, the CEO of the Minerals Council, said the industry would be engaging with the department on the bill in what was expected to be a marathon rather than a sprint. 'We will not negotiate the bill in public… It will take time. It will be a lengthy process,' he said. 'We will take it one step at a time, but from the progress we have seen so far in submitting our detailed submission I think there's a possibility that we can avoid seeing ourselves in court.' Not negotiating in public means that the council is keeping its specific concerns under wraps for now, though when the bill was first flagged in May it did raise alarms over the failure to exclude BEE requirements for exploration. That has since been amended. 'The Minerals Council's overarching concern with the bill is that in its current form it does not encourage investment in the industry for growth. Its reliance on regulations that have yet to be published for public scrutiny make it impossible to fully engage the department in detail on key elements of the bill,' the council said. Like a miner without a headlamp, this means that the industry is groping in the dark. What this means for the industry Regulatory clarity is crucial for investment in the mining sector. Without investment, there is no mining and no transformation in the sector. A lengthy engagement where both sides display compromise would be the best outcome. Otherwise it will probably end up in court — and the regulator usually loses on that front. In a presentation, the council said key areas of broad focus and contention included transformation and empowerment — subjects that have long been bones of contention in post-apartheid South Africa. On that front, the Minerals Council produced a new factsheet to burnish its transformation credentials. Historically disadvantaged South Africans now have a 39% ownership stake in the mining sector, far above the 26% target. Much of this stems from pension funds. 'In 2023, a study on employment equity and human resource development showed women now make up 19% of the full-time workforce, with ongoing efforts to improve representation and safety,' the factsheet reads. 'Through Social and Labour Plans (SLPs), the mining sector invests more than R3-billion annually in community development — far exceeding the 1% Net Profit After Tax benchmark in other sectors — funding schools, roads, clinics, water and sanitation projects, and much more.' In the presentation, one chart showed that monthly per capita earnings for miners have soared about six-fold the past 20 years to more than R30,000.
Mint
a day ago
- Business
- Mint
South Africa Mining Lobby Gives Draft-Law Feedback With Concerns
(Bloomberg) -- 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. 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. 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. More stories like this are available on
IOL News
a day 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
Zawya
29-05-2025
- Business
- Zawya
Minerals Council South Africa inputs not reflected in MRD Bill
The Mineral Resources Development Bill (MRD) does not reflect inputs from the Minerals Council South Africa. The Mineral Resources Development Bill (MRD) does not reflect inputs from the Minerals Council South Africa. These were given during brief, high-level engagements with the Department of Mineral and Petroleum Resources. So says its CEO Mzila Mthenjane. 'The draft bill is not altogether optimal. We did have engagements with the department, but we cannot see where our inputs were taken into consideration,' says Mthenjane. 'What we were exposed to in our two engagements was very high level, and we were not given any access to the underlying wording of what we were shown and how it was being amended,' he says. Empowerment requirements Giving an example, Mthenjane points to oft-repeated public comments by Minister Gwede Mantashe that prospecting companies were excluded from the same empowerment requirements for holders of mining rights. 'We raised this point over and over in our engagements with the department that the amendments must specifically exclude prospecting companies from empowerment requirements. 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 says. The Minerals Council continues to review the Bill and will further engage the department to co-create a regulatory environment that will attract and support investment in exploration, mine development and the sustainability of existing mines to unlock the potential of South Africa's mineral resources for economic growth and job creation. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
News24
20-05-2025
- Business
- News24
If SA pursues unfriendly mining laws, our investment crisis will deepen
Neglecting the growth potential of South Africa's mining industry in favour of prescriptive, and unwelcoming mining and trade laws would further deepen negative perceptions of the country as an investment destination, writes Minerals Council SA CEO Mzila Mthenjane. The mining industry's contribution to South Africa and its people is — and has for a century been — a cornerstone of our economy despite the regulatory, administrative and operational difficulties that have prevented it from reaching its full potential. The mining industry has its role to play, for without it, the potential to beneficiate minerals would not be possible. However, once the minerals are mined, the country needs to support the development of a downstream value-chain that can take these minerals and value-add them into products that are sold above the prevailing metal trading prices in the standard markets. This is what true beneficiation looks like; and achieving this is not the responsibility of mines but sits within an enabling environment that should be provided by government policy to harness private sector capital beyond mining and foreign investment and expertise. South Africa has a long history of mining and adding value to mineral ores, and there remains more opportunity for further beneficiation and fabrication of the minerals that are mined in South Africa. Since 2007, gold jewellery fabrication in South Africa has dropped from 7.5 tonnes of gold to less than one tonne (Jewellery Council., 2015). The statistics show that since the implementation of the Precious Metals Act, 2005, beneficiation (fabrication) of precious metals has declined in all sectors except gold coin fabrication. Even gold coin fabrication expansion was not attributable to an enabling Act, but due to the bullish market in gold. Eskom has since its founding in 1923 used locally mined coal to provide electricity to grow the biggest and most sophisticated economy and industrial base in Africa. Sasol's coal to liquid fuels processing is another example of value addition from this commodity. A century ago, Rand Refinery opened, becoming the world's largest single-site gold refinery, producing Krugerrands since 1967 to lead the world in bullion coins, creating additional demand for South African gold. More than 60 million ounces of Krugerrands have been sold in the past five decades. This is beneficiation at work within the country; but it is limited to a very select few businesses. Rand Refinery, among others in South Africa, including Metal Concentrators, produces gold bars and semi-fabricated products used in jewellery manufacturing supporting the beneficiation economy. However, there is not nearly enough manufacturing in this portion of the value-chain to make a meaningful impact on demand for the precious metals that are mined. Major platinum group metals (PGMs) producers are engaged in the complex chemistry of smelting and a two-stage refining process to produce the six metals in PGMs sought after around the world by the automobile industry, jewellery, medical products and industrial processes. There is future potential for PGM demand for hydrogen energy. Our local autocatalytic converter industry, at full capacity, had a share of about 19% of the global market. By the early 2000s, South Africa was a leading source of ferrochrome, ferromanganese and ferrovanadium, all used in the global steel industry. With increasingly expensive and erratic electricity supply since 2008, high transport and labour costs, our global competitiveness has eroded, rendering it unable to withstand downturns in prices as China aggressively expanded its local ferroalloy industry. Today, we have ferrochrome furnaces operational because of persistent operational constraints. South Africa is now exporting record volumes of chrome and manganese ore, mainly to China, which has become the largest maker of ferrochrome and a major producer of ferromanganese. Local diamond beneficiation, once employing more than 3 000 cutters and polishers now has barely 300 remaining, has been in decline. The growing discourse in the government and in the economy about beneficiation of mineral production must be considered against the lived reality of the mining and manufacturing sectors. Deindustrialisation in South Africa has been underway since 1993. The GDP share of manufacturing has declined from 21.4% to less than 13% in recent years. It is only when specific conditions are met, including that a large offtake contract or a sustainable market is secured and the binding constraints on beneficiation are removed, that punitive measures on the mining industry have any chance in boosting in-country beneficiation that is globally competitive. Higher levels of beneficiation can only be achieved through the reduction in burdensome red-tape and policy, which has had a proven strong negative effect on local beneficiation as we've seen in the diamond industry. An overly legislated environment has added compliance cost, dissuaded much needed international investment, and has caused wide-spread job losses without any upside benefits. The pending Mineral Resources Development Bill, as well as possible regulations from a department like Trade, Industry and Competition (dtic) must as far as possible avoid imposing any restrictions or sanctions on the free flow of mineral exports. In the absence of concrete evidence that restrictions on mining activity will 1) not harm primary mineral extraction, and 2) support more in-country beneficiation, we favour an incentive-based approach to achieve higher levels of beneficiation. Future beneficiation on commercial grounds will only be possible through securing investment and growth in exploration and primary mining. The Minerals Council is a firm supporter of beneficiation to maximise the benefit of South Africa's minerals and create jobs and wealth for the country and its citizens, but pragmatism and a firm grasp of economic realities must prevail in creating an attractive operating environment for fabricators to beneficiate local minerals. Fixing the underlying constraints of expensive and erratic electricity supply and inadequate and expensive transport logistics, as well as enhancing the level of manufacturing skills, will go a long way to halting -- and potentially reversing -- the trend of closures of smelters in South Africa's ferroalloys industry, a key factor in reduced load shedding. The deindustrialisation of our economy needs urgent intervention through structural reforms to encourage and support private sector participation and reverse the constraints leading to business closures and curtailed investments in industrial processes. While the Minerals Council is encouraged by the progress to date, in some cases an enabling environment remains absent for mining and beneficiation. In remote and rural areas where the bulk of mining happens, the dysfunctionality of municipalities makes daily operation difficult and unattractive for investments for any companies considering setting up businesses. The inability for licences to be validated and companies to be vetted through licencing offices makes compliance an increasingly challenging problem across the value chain and ultimately deteriorates the image of beneficiated minerals made in South Africa. The Mineral Resources Development Bill's amendments are a pivotal point for our mining industry. The Minerals Council has in all engagements with the Department of Minerals and Petroleum Resources advocated for investor-friendly, pragmatic regulations to encourage growth of the mining industry through increased exploration, mine development and investment in existing mines. Given our mineral endowment, the number of new greenfield mining operations in South Africa is disappointing. It would be a tragedy if the growth prospects for the South African mining industry and expansion for fabrication were ignored in favour of a more onerous, prescriptive and unfriendly mining and trading legislation that entrenches negative sentiment towards our country as a prospecting and mining investment destination. Over-regulation of beneficiation in the value chain will continue to constrain and reduce the amount of value that South Africa receives for its minerals and the jobs that the industry could stand to create.
