OPERATIONS • and Namibia with Australian and Canadian junior explorers being the most active ,” notes Mitchell .
Venter adds that there are few other continents that have the same opportunities for the junior miner , due to the mineral endowment available in Africa . He adds that Rwanda and Zimbabwe are also attracting investors , despite the very obvious challenges there . South Africa has unfortunately lost its market leadership in the mining space over the past decades .
Hopeful prospects Since 2020 the Minerals Council has been involved in the Exploration Revival Task Team , and the institution assisted the DMRE and the Council for Geoscience ( CGS ) to develop a viable exploration plan to remedy the lack of investment . Although the Exploration Strategy and the Exploration Implementation Plan were finally publicised in April 2022 , the only substantial move by the DMRE has been to finally re-RFP ( Request for Proposal ) for an off-the-shelf ( in this case ), transparent , corruption-free and efficient cadastral system to replace the dysfunctional South African Mineral Resources Administration ( SAMRAD ) system – the bespoke system the regulator introduced in April 2011 . This is only the first step to offering the investor community easy online access and fair opportunity to apply for well managed prospecting and mining rights , permits and licences , but will go a long way in turning investor eyes back south .
Mitchell , however , cautions that this is not a quick process – there are three parts to the process : the installation of specialised software ; data capture of over 150 years ’ worth of prospecting and mining rights already in the system to be retrieved from regional offices , where more recently competing rights and double deals will add to this work load ; and finally change management – “ I believe we are looking at a timeline of around 2 years ,” notes Mitchell .
Venter adds that although the RFP and the promise of delivering the system is a very positive development – which of course will assist in opening up the market to a large extent – and that the advantages and benefits are clear – undue red tape must be eliminated , and it remains to be seen that the end result of this new system will in fact make it physically easier for new entrants to the market . He points out that the new system should be implemented on a practical level , with a clear and adhered to logistical framework and , more importantly , it must be implemented as soon as possible . is built , while his regional managers , on the other hand , return prospecting right applications with demands for empowerment particulars , further delaying already difficult processes that can take up to two years compared to little more than a month or two in other mining jurisdictions in Africa .
Although a 2021 High Court judgement declared that the Charter must be viewed as ‘ a policy document and not law ’, the Minerals Council members are focussing on ‘ transformation beyond compliance ’ in preparation and anticipation of the imminent Mineral Petroleum Resource Development Act ( MPRDA ) renewal , says Michell .
Venter explains that although the industry understands that the Mining Charter seeks to undo some of the inequalities of the past , it must also be considered that long-term successes with investors leading to exploration and a potential uptick in the economy too have a part to play in remedying the past , and any future considerations should be informed by a balanced approach .
In conclusion , we see that a year down the line , once again , although there is an acknowledgement of the importance of attracting exploration dollars back to South Africa , there has been very little practical action by the DMRE and government in addressing the exploration deficit and in supporting junior miners . The publication of the RFP for a Mining Cadastre is one step in the right direction , however , it remains to be seen how this pans out . The growth in the Junior mining producing sector , on the other hand , despite all of the infrastructure and financing challenges , shows that this sector could be one of the powerful solutions to unlocking sorely needed economic growth . •
The countries that are attracting the most exploration dollars in Africa are Democratic Republic of the Congo , Mali , Côte d ' Ivoire , Botswana and Namibia with Australian and Canadian junior explorers being the most active .
In the year since we last met , other than the repeated RFP , it is clear that very little has changed . Mitchell points out that other suggestions made by the Minerals Council in the exploration plan , such as the proposed flow-through share scheme solution suggested in 2020 – a successful Canadian model , which attracts investors ensures that the tax incentive flows back to the investor immediately , is still on the desk of Treasury , despite regular meetings . Although Treasury acknowledges the benefits of the proposed model , the idea must be approved at ministerial level , and once again it is a ‘ waiting game ’. This model would go a long way to attract investors to South African opportunities , particularly when coupled with an efficient mining cadastre .
The contentious Mining Charter With regards the Mining Charter of 2018 , and its impact on investor appetite – the Minerals Council has continually red-flagged inconsistencies whereby minister Mantashe has repeatedly stated that empowerment requirements in the Mining Charter do not apply to prospecting companies and will only kick in once a mine
References :
1 . To read the article go to https :// www . africanmining . co . za / 2022 / 05 / 03 / junior-mining-what-will-it-take-to-develop-at-afaster-pace-in-africa /
2 . To give an idea of just how valuable the juniors are to the South African economy , John-Ernest Fogwell , founder and chief advisor at Africa One Holdings and MD of the Junior Mining Association in South Africa , cites the MCSA research study which refers to Statistics South Africa numbers in 2018 , “ The Junior Mining Sector in South Africa , at the time , employed between 33 500 and 40 300 people directly , and the total numbers employed were estimated to be closer to 150 000 people indirectly as Juniors rely heavily on contractors .”
3 . S & P Global Market Intelligence : Currency volatility , policy revisions , agreement cancellation and deteriorating infrastructures are some of the risks facing investors in Africa . But investor interest is getting stronger with the green energy transition at full steam and turmoil outside the region due to the Ukraine invasion . Exploration budgets targeting Africa continued to grow year over year in 2022 , maintaining their 10 % share of the global budget . https :// www . spglobal . com / marketintelligence / en / news-insights / research / africamining-by-the-numbers-2022
www . africanmining . co . za African Mining Publication African Mining African Mining • June 2023 • 19