What are the challenges relating prospecting and mining licensing?


The Minerals Council South Africa notes the discussions referring to licence functions throughout the mining business which occurred on the Mineral Sources and Vitality Parliamentary Portfolio Committee conferences on 24 February and three March.

The Division of Mineral Sources and Vitality (DMRE) indicated that 235 mining rights; 2,485 prospecting rights; 1,644 mining permits; 238 Part 11 change of possession transfers; and 724 licence renewals are at present backlogged.

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Primarily based on a survey of Minerals Council members representing over 170 mining firm proper functions performed in December 2020, mining firms which can be members of the Minerals Council have initiatives value about R20 billion which were prevented from being developed resulting from sluggish authorities processes together with delays within the approval of permits and mining proper transfers, and the issuing of water-use licences and environmental permits.

The initiatives recognized embody exploration and mining operations, a few of which have been delayed for 2 to 3 years, and a few for even longer.

The survey excluded potential initiatives firms haven’t progressed but by means of their funding committees, and expenditure on self-generation energy initiatives to complement electrical energy provide from Eskom, which is the topic of a separate course of between the DMRE and Minerals Council.

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Says Minerals Council CEO, Roger Baxter: “In mid-2020, in the course of the top of the COVID-19 lockdown, the Minister of Mineral Sources and Vitality and Minerals Council Workplace Bearers agreed on an important course of to revive mining within the “new regular”.

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“A collection of process groups had been established to resolve varied points together with regulatory constraints and backlogs, coverage challenges and infrastructure constraints.

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“The Minerals Council has taken a really sensible constructive, problem-solving strategy to addressing the problem of licence delays and within the one-stop-shop process staff has submitted all of the related particulars of the 170 plus proper functions listed above, with a sensible give attention to the best way to get these blockages resolved as expeditiously as potential.

“We proceed to interact with DMRE Director-Normal, Thabo Mokoena on methods to prioritise the issuing of excellent licences.”

The Minerals Council has made the next recommendations on important reforms required to encourage better funding in exploration and mining to the DMRE:

  • Discarding the dysfunctional SAMRAD software system and develop a model new, clear and dependable on-line mining cadastral system;
  • Guarantee the whole licensing system is digital, with correct receipts for paperwork uploaded and timeframes inside which suggestions should be offered and licences issued;
  • Making certain that any corruption or malfeasance is reported;
  • Addressing ambiguities within the legislation;
  • Halving licensing occasions; and
  • Common reporting by the DMRE on licences utilized for, granted and refused to make sure full transparency.

“An open and clear cadastre system is an integral part of a contemporary mining financial system. Lots of the mining jurisdictions in sub-Saharan Africa have them – Botswana and Zambia are examples.

“It actually would help in attracting funding, together with tax incentives for exploration. It’s essential to handle and develop exploration in addition to to cut back purple tape when issuing licences and permits.

“A number of the concepts contained within the process staff discussions with the DMRE have discovered expression within the Financial Reconstruction and Restoration Plan introduced by President Ramaphosa on 15 October 2020.

“These embody the important must halve licensing occasions and the event of a brand new exploration plan.

“Lots of work has been achieved by stakeholders, together with the DMRE, the Council for Geosciences, the Minerals Council and different companions to develop an exploration plan. As soon as finalised within the not-too-distant future, we consider this might be a game-changing plan. We await steering from Minister Mantashe and Director-Normal Mokoena,” concludes Baxter.


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