MINING IN FOCUS
SA SHOULD
NURTURE JUNIORS
The South African mining industry needs a strong, growing junior mining
sector, writes Leon Louw.
T
he junior mining sector in South Africa is a tough place to
play in. Although the country brims with mineral deposit
opportunities for new entrants, a number of challenges have
hamstrung the ambitions of emerging miners.
Historically, large multinationals dominated the mining industry in South
Africa, and therefore set the agenda, and wrote the narrative on behalf of
the mining fraternity in the country. That is changing rapidly though. With
the majors departing South Africa for many different reasons, companies
referred to as junior miners (or emerging miners), are trying to fill the void
left by the global players, while also creating a space for themselves in a
geological landscape full of opportunities for streamlined smaller operators.
But a word of cation; if you are an entrepreneur with ambitions to become a
mining giant, think again. It is a hard slog, with considerable challenges, and
only the toughest and most resilient survive.
Juniors on the rise
Despite challenging times for miners in South Africa, the number of what
are generally referred to as junior mining companies has steadily increased
over the last five or six years. According to Grant Mitchell, who heads up
the Emerging Miners’ Desk at the Minerals Council of South Africa, statistics
indicate that the junior and emerging mining sector is significant, and
represents about 10% of the total mining industry. A recent survey carried
out by the Junior and Emerging Miners’ Desk indicates that junior and
emerging miners had revenues of R54.4-billion in 2018 and despite the
myriad challenges facing the industry as a whole, spent in excess of R55.5-
billion in the same year. The Junior and Emerging Miners’ Desk provides
advice and support, and acts as a resource centre for the sector.
In a country where a culture of smaller scale mining operations and
greenfields exploration has failed to take root, and where artisanal miners
Small scale miners across the
country are finding it difficult to
comply with all the regulations
of the Mining Charter III.
30
African Mining September 2019
www. africanmining.co.za