South African mining requires a one-stop regulatory environment to boost growth and streamline operations, according to Minerals Council South Africa CEO Mzila Mthenjane. Speaking at the council’s 134th AGM, Mthenjane emphasized the need for a centralized system where applicants can submit documents and receive communication from a single source.
“That’s a process that needs to take place as quickly as possible,” Mthenjane stated during the media conference. “This will make the cadastral system more efficient and attract investment in existing operations and future growth.”
Mthenjane highlighted the importance of rethinking mining’s role in South Africa’s economy. He noted that mining must be firmly positioned as a key economic driver. “A R1-million increase in mined output results in 2.5 economy-wide job opportunities,” he explained. “This helps people escape poverty, benefiting households with three to four dependents per employee.”
Mthenjane acknowledged past mistakes that contributed to the industry’s decline. “We need to rethink the role of mining and its future role in our economy,” he said. He stressed the importance of listing mining as a top priority for economic growth.
Regarding steps to rebuild the shrinking industry, Mthenjane pointed to the need for enabling infrastructure. “Addressing infrastructure challenges will boost investor confidence,” he said. He also emphasized the importance of exploration for long-term growth. “Legislative arrangements, not just within the Department of Mineral Resources and Energy (DMRE), but also involving other departments, need streamlining.”
Outgoing Minerals Council President Nolitha Fakude emphasized that the mining industry has the potential to contribute significantly to South Africa’s development. “#Mining Matters to South Africa has never been more relevant,” she stated. Over the years, the sector has worked to create an inclusive socioeconomic future for all South Africans.
Fakude noted that management transformation has been significant, with 83% of management positions now held by historically disadvantaged South Africans. Black-owned and -managed companies like African Rainbow Minerals and Exxaro Resources have emerged as industry leaders. Additionally, many small black-owned and black-women-owned junior companies are part of the Minerals Council.
Despite progress, Fakude acknowledged missed opportunities due to an unfavorable operating and legislative environment. “Slow approvals of mining and exploration rights, erratic electricity supply, and declining rail and port functionality have hindered the industry’s potential,” she said.
However, the Minerals Council remains engaged with the government and other business formations to address these issues. Fakude pointed to “small green shoots of progress” resulting from ongoing efforts to improve operational performance and implement structural and regulatory reforms.
The call for a streamlined regulatory environment reflects a broader vision for South Africa’s mining industry. By creating a more efficient system, the industry aims to attract investment, boost growth, and contribute to the country’s economic development. As the Minerals Council continues to advocate for these changes, the future of South African mining holds promise for both the economy and its people.
Source: Mining Weekly
