The South African mining sector is falling behind globally due to delays in implementing a cadastral system for the licensing of exploration and mining activities.
The Minerals Council issued this warning during a meeting with parliament’s portfolio committee on mineral and petroleum resources in Cape Town on Tuesday, part of the committee’s broader engagement with the sector.
Despite initial announcements of a cadastral system launch in February, mineral and petroleum resources minister Gwede Mantashe confirmed in July that the system’s migration would only be completed by June next year.
Tebello Chabana, the Minerals Council’s senior executive for public affairs and transformation, highlighted that the absence of a transparent online cadastral system is a significant weakness. “South Africa must have a transparent online cadastral system. It is essential. Our peers are amazed that we are one of the few mining countries without such a system,” Chabana remarked.
He further emphasised the need for government portfolios to align in support of the mining sector, criticising policies outside the mineral resources portfolio that hinder mining operations. “The department is working on securing the cadastral system for next year, but many other issues, such as clarifying BEE requirements during the prospecting stage and addressing anti-mining legislation from other departments, remain unresolved,” Chabana said.
Chabana expressed concern about the country’s lack of new mining activities, stating that South Africa is falling behind peers like Australia. In 2023, mining’s contribution to GDP dropped to 6.3% from 7.3% in 2022. He also noted South Africa’s declining share in global exploration expenditure, which has fallen from 5% to less than 1%, while Australia has risen to 5%.
MK Party MP Brian Molefe attributed the decline to an “investor strike” by the private sector, while DA MP James Lorimer inquired about the overall health of the sector. Chabana responded that the industry was not where it needed to be.
Bridgette Radebe, president of the South African Mining Development Association (Samda), echoed these concerns, pointing to legislative delays and lack of coordination between government departments as obstacles for mining investors and producers.
Committee chair Mikateko Mahlaule announced that the portfolio committee will continue engaging with mining and petroleum organizations through December, with oversight visits to Gauteng and the North West planned for October and a December visit to petroleum industry sites.
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