Minerals Council South Africa Urges Certainty and Stability Amid New Mining Bill

The Minerals Council South Africa, led by CEO Mzila Mthenjane, has raised critical concerns about the recently published Mineral Resources Development Bill, arguing that the current draft does not adequately encourage investment and growth in the mining industry. Speaking on the subject, Mthenjane emphasized that South Africa finds itself at a defining moment for both the country and the mining sector. With the bill aiming to modernize the industry, ensuring clarity, predictability, and security of tenure will be essential to attract both local and foreign investors.

Certainty and Security of Tenure

A central theme of Mthenjane’s remarks was the principle of certainty and predictability in legislation. He stressed that for mining to thrive, investors must have assurance that their rights whether prospecting or mining remain secure over time. A prospecting right, for instance, typically extends for five years, while a mining right covers 30 years. Sudden or significant changes to the law could undermine the value of investments made during this period.

“The key issue is that if you’ve applied for a prospecting or mining right, you must be certain that right will remain yours for the agreed duration,” Mthenjane explained. “Investors need confidence that the law won’t shift in ways that damage the long-term value of their investment

Balancing Beneficiation with Market Realities

The bill also reaffirms South Africa’s drive toward beneficiation the local processing of minerals before export. This aligns with the country’s development goals but raises questions about market dynamics. For beneficiation to succeed, investors need both market access and price certainty.

Industry players suggest that investment packages should include targeted incentives for those willing to beneficiate, ensuring that policies align with economic realities rather than creating additional risks.

Environmental Provisions and Mine Closure

Environmental stewardship remains a core theme. Clearer guidelines around mine closure certificates are seen as vital for investor confidence. Once rehabilitation and environmental obligations are fulfilled, companies need to know they will be discharged of liability, freeing land for future use.

This certainty not only secures investor confidence but also encourages new opportunities in communities once mines have closed.

Addressing Illegal Mining

Illegal mining continues to disrupt the industry, posing risks to safety, communities, and the economy. A notable amendment in the bill is the reclassification of illegal mining from trespassing to a criminal offense. This shift is widely welcomed as it provides stronger grounds for law enforcement and greater alignment across government in tackling the issue.

Reviving Exploration Investment

Perhaps most concerning is the steep decline in exploration spending. Budgets have dropped from over R6 billion to just a few hundred million rand, threatening the pipeline of future mining projects. With investors increasingly channeling capital into emerging sectors like artificial intelligence, South Africa must work harder to make mining attractive.

Stakeholders stress that reducing “non-market risks” such as regulatory uncertainty, weak infrastructure, and security concerns will be key. Investors can manage fluctuations in commodity prices, but they are less willing to take on risks tied to unstable policies or unclear property rights.

The new mineral bill provides an opportunity to reset the investment climate for mining in South Africa. To realize its ambitions, it must deliver a framework that guarantees tenure security, incentivizes beneficiation, strengthens environmental governance, and decisively tackles illegal mining. Read more here