*Photo: Mzila Mthenjane, CEO of MCSA*
The Minerals Council South Africa (MCSA) says it is pleased with a bill seeking to criminalise illegal mining.
Mzila Mthenjane, CEO of MCSA
said this at an August 18 press briefing on the Mineral Resources Development Bill (MRDB) being proposed by the
nation’s Department of Mineral and Petroleum Resources (DMPR)
“We welcome the criminalisation of illegal mining in the MRDB, which addresses long-standing concerns of the Minerals Council. We have recommended more effective penalties to serve as a deterrent in the long run. In addition, the streamlining of the appeals process is positive,” Mthenjane said.
He stressed that “The regulatory environment must encourage investment in exploration, mine development, and the sustainability of existing mining operations so that the industry can grow, create jobs, and generate the wealth it is capable of delivering for the benefit of all South Africans,”
Mzila Mthenjane added that “Our key point of departure in engagements with the DMPR is to have pragmatic conversations that address elements of the MRDB that discourage investment and growth in an industry with untapped potential that is not being realised.”
The MCSA boss noted that it was important for the MRDB to create certainty, predictability and a competitive regulatory environment, while eliminating ambiguity in what would become law, to enable the industry to build on past successes.
He further emphasised that the council and its members remained committed to transformation, which could be advanced through a flourishing mining sector that created new opportunities for all stakeholders and newcomers.
He said “Mining legislation is a key contributor to investment and growth. We are striving to shift investor sentiment to encourage more investment in the country. Security of tenure is an essential component of this. When it comes to the interpretation of the law, the language must be clear.
“For example, the Bill specifies that there is no empowerment requirement for the application of prospecting rights. That must be understood consistently at both national and regional government levels, and clearly reflected in the law. Otherwise, those tasked with applying the law may interpret it differently, creating uncertainty.”
MCSA said it had no objection to the inclusion of artisanal mining in the MRDB, provided this was carried out in an environmentally responsible, safe and healthy manner, with clear obligations and responsibilities assigned.
The Council assured that it
will continue to engage with DMPR on the MRDB to ensure the mining regulatory environment is conducive to investment, growth and job creation.
MCSA is an advocacy and impact group whose members represent 90% of South Africa’s mineral output and employ close to 480, 000 people.
The Mineral Resources Development Bill (MRDB) 2025, proposed by the South African Department of Mineral and Petroleum Resources (DMPR), is a draft legislation intended to replace the Mineral and Petroleum Resources Development Act (MPRDA) of 2002.
The bill aims to update the regulatory framework for South Africa’s mining and petroleum sectors, addressing issues like equitable access, sustainable development, and transformation of the industry.
Below is a detailed overview based on available information:
Key Objectives and Provisions of the MRDB 2025
The MRDB seeks to modernize the governance of South Africa’s mineral and petroleum resources, with a focus on:
Equitable Access and Transformation.
The bill continues the MPRDA’s objectives of promoting equitable access to mineral resources, advancing socio-economic development, and empowering historically disadvantaged South Africans (HDSAs). It emphasizes transformation in the mining sector to address historical inequalities.
Regulation of Artisanal and Small-Scale Mining:
A significant new feature is the formal regulation of artisanal and small-scale mining, including the introduction of permits and the creation of designated artisanal mining zones to support small-scale miners and integrate them into the formal economy.
Sustainable Development: The bill aims to ensure that mineral and petroleum resources are developed in an ecologically sustainable manner, aligning with Section 24 of the South African Constitution, which guarantees the right to an environment that is not harmful to health or well-being.
Socio-Economic Development: It mandates that holders of mining and production rights contribute to the socio-economic development of the areas where they operate, including job creation and community development programs.
Security of Tenure: The bill maintains provisions for security of tenure for prospecting, exploration, mining, and production operations, balancing transformation goals with investor confidence.
Public and Industry Reactions
The MRDB has sparked significant discussion, particularly from the Minerals Council South Africa, which represents major mining companies
Concerns About Investment and Growth: The Minerals Council has expressed concerns that the bill, in its current form, does not foster an environment conducive to investment and job creation.
They argue it may hinder the mining industry’s growth due to regulatory uncertainties or burdensome requirements.
Engagement with DMPR: The Council has actively engaged with the DMPR, submitting formal inputs before the public comment deadline of August 13, 2025. They aim to find common ground and refine the bill to support both transformation and industry growth.
Media Briefing: On August 18, 2025, the Minerals Council hosted a media briefing to discuss their position on the MRDB, highlighting key areas of concern and proposed amendments.
Public Participation:
The DMPR opened the MRDB for public comment, with the deadline for submissions closing on August 13, 2025. The department encouraged stakeholders to provide feedback to shape the final legislation.
Context and Background
The MRDB builds on the MPRDA of 2002, which established the state as the custodian of South Africa’s mineral and petroleum resources, aiming to redress historical inequalities and promote sustainable development. The new bill responds to evolving industry needs, including addressing illegal mining, enhancing beneficiation (local processing of minerals), and formalizing artisanal mining.
Next Steps
The DMPR is expected to review public submissions and engage further with stakeholders to refine the bill. The Minerals Council and other industry players are advocating for changes to ensure the legislation supports both transformation and economic growth.
The final version of the bill will need to be tabled in the National Assembly for approval.
