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Mining Indaba: SA’s new mining rights system must work within a year
Mantashe said government is working hard to clear the country's vast backlog of applications in order to reignite exploration activity.
Minister Gwede Mantashe at the 30th Mining Indaba in Cape Town on Monday. Picture: GCIS
Minerals Resources and Energy Minister Gwede Mantashe said South Africa’s new mining rights system must work within a year
Mantashe was speaking at the 30th Mining Indaba in Cape Town on Monday.
Having chosen the preferred supplier for the mining resource management system last week, the minister said the government is working hard to clear the country’s vast backlog of applications in order to reignite exploration activity.
Mining rights
Mantashe said the government is working hard to clear the country’s vast backlog of applications in order to reignite exploration activity.
“The implementation of the new cadastral system will take place over a period of time.
“We don’t want to rush it; we want to implement it systematically. I have directed the department to ensure that the migration to the new system is completed within 12 months to guarantee regulatory certainty,“ Mantashe said.
ALSO READ: Ramaphosa says mining has transformed significantly since apartheid era
Mantashe added that 2023 proved to be a tough year for Africa’s industry due to a myriad of international and domestic factors.
“High energy prices, high inflation, lower commodity prices, coupled with load shedding and logistical bottlenecks continued to put pressure on operational costs and thus constrained to bare minimum the mining industry’s contribution to our economies.
“Government is investing efforts and resources to resolve these bottlenecks through the National Energy and Logistics Crisis Committees comprised of private and the public sector,” Mantashe said.
Energy supply
Meanwhile, Rudi van Blerk, Partner at Boston Consulting Group said to ensure a sustainable business approach, several South African mining companies are taking steps to secure their energy supply.
“In the past, mining companies directed their resources to solar and wind generation, but there is now also more investment in storage, for example batteries and pumped hydro to make renewable capacity more effective.
“Despite the energy challenges, mining companies are identifying exciting opportunities that go beyond building capacity for their own operations,” said Van Blerk.
On Monday, during his headline address at the Mining Indaba, President Cyril Ramaphosa said mining is a pillar of an economy which has undergone significant transformation from the apartheid era.
ALSO READ: Ramaphosa talking as mines bleed
