Comment
Government ignores
emerging miners
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@LeonLouw3
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T
he dust around Mining Charter III has not
settled. While the Minerals Council of South
Africa is challenging parts of the Charter at the
judicial review level, the junior mining sector
is questioning government’s sincerity in growing and
developing emerging miners.
According to Errol Smart, CEO of Orion Minerals
and Chair of the Junior and Emerging Miners Leadership
Forum in the Minerals Council, there are elements in
Mining Charter III that hamper the development of
junior mining companies, who face untold challenges in
advancing their projects. Smart spoke at a recent seminar
organised by the Minerals Council to discuss the impact of
the Mining Charter on junior mining companies.
The junior mining sector is of utmost importance in the
South African context, and includes several young, black
emerging miners. But many exploration projects, mid-tier
producers, and small-scale companies are hamstrung by
the stringent regulations of Mining Charter III and a lack
of government support and funding.
According to the Minerals Council, junior, or emerging
miners, are active in sectors such as industrial minerals,
diamonds, platinum, coal, manganese, iron ore, chrome and
other base metals.
Despite the many challenges junior mining companies
face, the sector as a whole spent more than R55.5-billion
in 2018 — a significant amount in a stagnant South
African economy. A recent study carried out by the
Minerals Councils’ Junior and Emerging Miners’ Desk
indicates that this sector represents about 10% of the total
industry.
Since the advent of the Mineral and Petroleum
Resources Development Act (MPRDA) in 2002, there
has been a proliferation of small mining companies in
South Africa. Their growth and development are critical
in a country where the unemployment rate is hovering at
about 27.6%.
A mining project, no matter how big or small, creates
employment opportunities for community members and
enables local suppliers and service providers to establish
themselves in the mining industry.
It therefore makes sense to give junior mining
companies and emerging miners all the support they
need. However, despite Minister Gwede Mantashe’s good
intentions, Mining Charter III falls short in this regard.
It is near impossible for junior miners to comply with the
same regulations majors are subjected to.
The junior sector feels hard done by, and in a New
Dawn, their voice should be heard, as they have the
potential to truly transform the South African mining
industry.
Leon
Editor
A mining project, no matter how big or small, creates
employment opportunities for community members and
enables local suppliers and service providers to establish
themselves in the mining industry.
www.miningmirror.co.za
JULY 2019 MINING MIRROR [1]