ESG

South Africa to prioritise exploration, formalise artisanal mining

South Africa is prioritising exploration and formalising artisanal mining, among moves to boost the mining sector and in turn the country’s battered economy, resources and energy minister Gwede Mantashe told a mining forum this week.

Staff reporter
 South Africa’s mineral resources and energy minister Gwede Mantashe addressed the 2020 Junior Indaba

South Africa’s mineral resources and energy minister Gwede Mantashe addressed the 2020 Junior Indaba

Mining had contracted in the second quarter of 2020 in South Africa, and the country had already slipped into recession prior to the COVID-19 lockdown in March.

Mantashe said it was "time for the industry to work together to pull South Africa out of the crisis".

"The future of our mining industry rests with the junior mining sector," he said at 2020 Junior Indaba.

"Exploration is the way to go and a priority for the department."

Artisanal mining would be formalised to create an avenue to mine sterilised desposits.

Mantashe said the government was moving to address issues including regulatory and electricity certainty and investing in "precompetitive geology".

It had allocated R268.3 million to improve the quality of geoscience information available.

"We have resolved the long-standing regulatory uncertainty in respect of the mining charter, with BEE [Black economic empowerment] ownership omitted at the exploration phase," he said.

He reportedly accused Sibanye-Stillwater of stealing its BEE compliance rating at the conference, according to Reuters, referring to compliance credits transferred from Gold Fields to Sibanye Gold along with gold assets in 2013. The company, now Sibanye-Stillwater, told the wire service it was "very confident" of its position and was engaging with the mining department.

Mantashe also said the government was tackling the barrier of access to funding, but did not refer specifically to plans mooted last month for a flow-through share scheme akin to Canada's to incentivise investment in exploration. 

"As we develop a comprehensive programme to support junior miners, we will finalise work underway with development finance institutions and the private sector," he said in his address.

He reiterated a commitment to ensure transparency and short turnaround times for processing mining and prospecting licences, and said the government was working with "necessary speed" to find solutions for the country's electricity challenges.

The event in Johannesburg continues today.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.