KEY POINTS
- Minerals Council says the mining bill must support investment certainty.
- MRDB in current form risks discouraging growth and jobs.
- Mining legislation must provide clear rules for all stakeholders.
The Minerals Council South Africa says it will continue to push for deeper engagement with the Department of Mineral and Petroleum Resources (DMPR) over the proposed Mineral Resources Development Bill (MRDB), warning that the current draft risks discouraging badly needed investment in the country’s mining industry.
Council chief executive officer Mzila Mthenjane told reporters on August 18 that the organization had filed detailed submissions ahead of the August 13 deadline and would continue pressing the government for revisions that would make the regulatory framework predictable, competitive and supportive of growth.
Minerals Council urges clarity on mining bill
Mthenjane argued that global investors are already hesitant about South Africa’s mining prospects, despite the country’s vast geological resources. “The regulatory environment must encourage investment in exploration, mine development, and the sustainability of existing mining operations so the industry can grow, create jobs, and generate wealth,” he said.
He added that the MRDB, as currently written, risks leaving too many questions unanswered, particularly since much of the framework relies on regulations that have yet to be published. Without clarity, Mthenjane warned, the law could end up being applied inconsistently across national and regional authorities, creating uncertainty for investors.
Mining bill must support investment certainty
Among the council’s concerns are provisions related to beneficiation, empowerment, tailings management and mine closures—areas that depend on future regulations. “Mining legislation is a key contributor to investment and growth,” Mthenjane said. “Security of tenure is essential. The language must be clear.”
The council backed the Bill’s inclusion of artisanal mining, provided it comes with strong safety and environmental safeguards. It also welcomed the criminalization of illegal mining and supported tougher penalties to deter offenders. Still, Mthenjane said, the penalty system will need further refinement to be effective in practice.
The Minerals Council has also called for the streamlining of appeals processes and warned that prescriptive obligations—rather than incentives—could stifle the sector. Instead, the group urged government to focus on improving infrastructure, lowering electricity costs and incentivizing beneficiation.
Council seeks balanced reform in mining bill
Transformation, Mthenjane stressed, remains central to the industry’s agenda. He noted that South Africa’s mining sector is already among the country’s most transformed industries, a fact Mineral Resources Minister Gwede Mantashe himself has acknowledged. Building on that progress, the council said, requires regulatory stability and policies that attract investment instead of deterring it.
“The global market for mining capital is highly competitive, and South Africa is not attractive enough for large-scale exploration and mine development,” Mthenjane warned. “We will continue to engage the DMPR to ensure the MRDB supports growth and the wider economy.”
While stressing that the council would not negotiate the Bill in public, Mthenjane underscored that quiet but firm engagement with policymakers offered the best chance of ensuring legislation that serves the sector and the nation.
