The Minerals Council of South Africa says there will continue to be a decline in investment in exploration if government doesn’t address concerns about the Mineral Resources Development Bill.
The controversial Bill was published in May 2025 for public comment by the Department of Mineral and Petroleum Resources (DMPR), will now be sent to Parliament before being signed into law, as public comment closed on 13 August. The piece of legislation aims to officially regulate artisanal and small-scale mining by introducing permits and establishing designated zones specifically for such activities.
The Minerals Council said it 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.
There are reportedly 20 000 artisanal miners in South Africa; however, this number is considered an underestimate as no formal study has been conducted.
In its submission before the 13 August deadline, the Council said its point of departure in engagements with the Department of Mineral and Petroleum Resources is to have pragmatic conversations that address elements of the Bill that discourage investment and growth of the industry which they all agree has untapped potential that is not being realised.
“The regulatory environment must be conducive to encouraging investment in exploration, mine development and sustain 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,” Minerals Council South Africa chief executive officer (CEO) Mzila Mthenjane said at the time.
The Minerals Council is not the only entity concerned by parts of the Mineral Resources Development Bill.
Agricultural organisation AgriSA said while the Bill purports to streamline regulation and promote inclusive economic development, its current form poses significant risks to South Africa’s agricultural sector, food security, and rural sustainability.
“AgriSA is deeply concerned that the Bill was not subjected to a Socio-Economic Impact Assessment (SEIA), as required by Cabinet policy. Had such an assessment been conducted, the risks to food production, water quality and rural livelihoods would have been evident.
The organisation said beyond the Bill, the broader relationship between mining and agriculture remains fraught.
“Fragmented permitting regimes, opaque consultation processes, and weak enforcement mechanisms continue to erode trust and compromise land-use planning. Mining activities often disrupt irrigation infrastructure, contaminate water sources, and leave behind unrehabilitated land, thereby jeopardising both current and future agricultural productivity.”
Speaking to MoneyWeb this week, Mthenjane said there’s a constant competition for greenfield mining and South Africa needs to position itself as a preferred destination for investment, adding that it will not happen by virtue of the fact that the country is rich in minerals.
“We need to make sure that anyone who decides to invest in that is guaranteed a return on the capital and on the safety of their investment.”
