Miningweb: Mining lobby warns of uncertainty as South Africa revises draft sector bill

Key topics:Minerals Council fears new mining rules could harm investment and growthDraft bill’s Black-ownership and local processing rules remain unclearMining sector vital to SA GDP, exports, and jobs, seeks clarity in law.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.By William Clowes.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.Area of ConcernKey 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 organisation’s head of legal, Ursula Brown..Read more:.Miningweb: Mantashe’s mining bill - A card trick against the Constitution: Patrick McLaughlin.“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 formalise 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..© 2025 Bloomberg L.P.

Miningweb: Mining lobby warns of uncertainty as South Africa revises draft sector bill

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