In order to make sure that the Mineral Resources Development Bill (MRDP) encourages investment, industry growth, and job creation in South Africa, the Minerals Council South Africa has stated that it will work closely with the Department of Mineral and Petroleum Resources (DMPR). Public comment on the draft Bill closed on 13 August 2025.
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“The regulatory environment must be conducive to encouraging investment in exploration, mine development and sustain(ing) 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,” says Mzila Mthenjane, CEO of the Minerals Council.
“Our key point of departure in engagements with the department is to have pragmatic conversations that address elements of the Bill that discourage investment and growth of the industry, which we all agree has untapped potential that is not being realised,” he says.
Eliminating ambiguity
It’s crucial to the Minerals Council that the Bill creates certainty, predictability and a competitive regulatory environment, while eliminating ambiguity in what will become the Act to ensure we build on the successes we have had to date.
The Minerals Council indicated that its members are committed to the transformation of the industry, which can be further broadened by a flourishing mining sector, creating new opportunities for all role players and newcomers.
The Minerals Council has no objection to the inclusion of artisanal mining in the Bill, provided it can be done in an environmentally responsible, safe and healthy manner, with clear, identifiable obligations and responsibilities attributable to artisanal mining.
Thus, the Minerals Council is advocating for a fit-for-purpose regulatory framework for artisanal mining.
“We welcome the criminalisation of illegal mining in the Bill, which addresses the long-held concerns of the Minerals Council.
“We have made recommendations for more effective penalties to be imposed to serve as a deterrent in the long run.
“In addition, the streamlining of the appeals process is positive,” said the council in a statement.
Giulia Paravicini and David Lewis 14 Aug 2025 Encouraging investment
The Minerals Council says that its overarching concern with the Bill is that, in its current form, it does not encourage investment in the industry for growth.
It adds that the Bill’s reliance on regulations that have yet to be published for public scrutiny makes it impossible to fully engage the DMPR in detail on key elements of the Bill.
In its engagement with the DMPR, the council will focus on key elements of the Bill, including the beneficiation, empowerment, tailings, and mine closure provisions, which rely heavily on unpublished regulations and, in their current form, are potentially disruptive to mining operations and potential investment.
The council believes that the government must look at incentivising beneficiation, developing transport and water infrastructure and cost-competitive electricity rather than imposing prescriptive obligations and penalising non-compliance with the Act and its regulations.
It has also stressed that the Bill must build on successes achieved in transformation and empowerment in the industry.
The mining industry has significantly transformed, a point that Minister Gwede Mantashe has repeatedly noted on public platforms, stating that mining is one of the most transformed sectors in the economy.
The Minerals Council said that it is looking forward to the engagement with the DMPR, and it will play its role in enabling the process to run its course to develop an optimal regulatory framework to grow and sustain the mining industry for the benefit of all stakeholders.
