Mining companies are assisting in Limpopo and the Northern Cape to ensure that R37 billion in water supply projects are brought to fruition.
Prominent figures in the mining industry spent almost a week in Cape Town to look at how to capitalise on the vast opportunities in Africa’s mining sector.
Mzila Mthenjane, CEO of Minerals Council South Africa, gave his address titled “What Miners Want” at the Investing in Africa Mining Indaba conference.
“I have deliberately and somewhat provocatively entitled this session ‘What Miners Want’ to leave no doubt as to what we believe will enable the mining industry to grow.”
Mining’s contribution
He said mining generated a turnover of R1 trillion in 2024 (a 9% decline from 2023) from various minerals, including precious metals, bulk commodities, and industrial minerals.
The industry could contribute R433 billion to the economy.
Mthenjane added that this performance was achieved through employing 475 000 people, which cost the industry R195 billion in wages and R117 billion in combined taxes and royalties.
“If the multipliers of ten jobs are created in other industries for every job in mining and each job supporting four or five family members, mining does matter.”
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State of the mining infrastructure
He stresses that SA would not be competitive or attractive if the industry considers the development of new mines and a flurry of exploration around the world and in Africa.
“This is because of the state of our infrastructure, which is essential to the competitive performance and growth of the mining industry and our regulatory environment.”
What miners want
He said there are different things that SA’s mining industry needs to be able to play a strong and competitive game and win for the nation.
The first thing he listed is the need for a regulatory environment that encourages local and foreign investment into the sector, which, in his view, has attracted less than 1% of global exploration spending for the past four years.
“With a vibrant exploration portfolio, we see an enduring, sustainable mining industry that changes the fate of many people, lifting them from continued unemployment, poverty and hunger to dignity and pride because of the wealth that mining can create.”
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Efficiency of licensing
Another thing they want is “the expected and timely introduction of a modern, transparent mining cadastre that will bring South Africa to level with other mining jurisdictions in terms of licencing efficiency to urgently manage the backlog of unprocessed prospecting and mining right applications.
“An investment-friendly exploration environment will encourage the creation of prospecting funds from the private sector, broadening the options for access to finance and opening further opportunities for new entrants to complement the funding from the government that is granted on a conditional basis and excludes a broad range of newcomers.”
Government’s role
Mthenjane added they want government departments to be aligned and streamline various aspects of approving prospecting and mining applications.
“Creating a one-stop shop for investors to expedite exploration and mining projects is critical.
“A holistic approach from a fully functional regulator, with skills and capacity to manage the sector, is equally essential to align the needs and performance of the industry, address the speed at which decisions are made and strengthen the trust between the DMPR and the industry.”
Mining industry to work with waterboards
Mthenjane said that to help with the country’s water crisis, mining companies are assisting in Limpopo and the Northern Cape to ensure that R37 billion in water supply projects are brought to fruition.
The industry has been working with waterboards and the Department of Water and Sanitation to raise the money needed to maintain the water infrastructure and, most importantly, to replace it because it is old.
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Other talks with the government
“We have spoken about the progress to date on electricity and logistics through the collaboration between business and government, Operation Vulindlela 2.0, where the shared ambition of achieving 3% GDP growth has been agreed,” he said.
Mthenjane noted that Transnet is implementing reforms to open its rail network and ports to private sector investment and participation.
This will lift railed tonnes from about 160 million tonnes this financial year to 250 million tonnes before the end of this decade.
“Mining companies, the biggest users of rail and harbours, will play a critical role in achieving this target.”
Renewable energy
He said the mining industry has a renewable energy pipeline of about 90 projects worth more than R275 billion to generate 15.8GW.
“As these projects are commissioned in coming years, they will take pressure off the grid, freeing up electricity for the economy.
“We want to grow because, as illustrated above, we want the mining industry to make a better, bigger, and more sustainable contribution to the well-being of the people of South Africa.”
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