Page 5 - Issue 3 2023

INDUSTRY NEWS

Ramaphosa, however, said the with the industry and private security to address cable theft and vandalism on the
implementation of Social and Labour freight rail network.
Plans (SLPs) must be improved, as Given increased safety and security threats in abandoned and operational mine
“mining must be at the forefront of sites, more consideration should be given to increasing security awareness, training,
social development”. The President capacity building and governance.
said that if the mine has water, the
community should have water. If the Regulation and policy
mine has roads, the community should A further omission from the minister’s address was the need to improve licensing
have roads. If the mine has a hospital, timelines and efficiencies, related to both mining and energy, which are ongoing
the community should have a hospital. problems for mining companies. He did not refer to the long-delayed mining cadaster.
There is certainly an obligation on Although he addressed the importance of the geological data available from the
mining companies to implement their Council for Geosciences, it is concerning that he may be hinting at a move towards
SLPs and there is already a mechanism putting all geoscience data in the hands of the state to facilitate a tender system,
to monitor implementation in the SLP rather than a “first come, first served” system for granting mining and exploration
regulations. When implementation is permits.
lacking, government has the means to While the minister’s reiteration of the importance of exploration, and plan to set
identify and deal with the defaulting up a R500 million fund for emerging miners, are positive, this fund needs to be well
parties. While the social obligations of run. Promoting exploration needs to be accompanied by an effective cadastral system
mines vis-à-vis their host communities and a concrete action plan on the other initiatives mentioned in the Exploration
cannot be gainsaid, government cannot Strategy, aimed at attracting investment and preventing the sterilization of minerals.
superimpose its constitutional and The President said government was accelerating economic reforms to improve
international obligations onto the the operating environment. This included reducing timeframes for environmental
mining sector. The interplay between authorisations, exempting energy projects from some environmental authorisations
these obligations, and when mining and speeding up the registration of new projects and grid connection approvals.
companies can and should step in, He also said government would continue to work to reduce backlogs in prospecting
must be carefully considered and and mining applications, which has been a problem for the mining industry over many
balanced. years. Ramaphosa said that over the past 18 months, the backlog had been cut by 42%
and he promised it would be eliminated in the “short to medium term”.
Illegal mining and safety The president said the DMRE is in the process of buying an “off the shelf” cadastral
The minister acknowledged that the system (land register) which could be adapted to South Africa’s needs. This is an
mining industry recorded the lowest essential step to ensuring a speedy and transparent system of granting licences.
number of fatalities in a year during On logistics, the President referred to the partnership between Transnet and
2022 but also reminded that this is Mincosa and said opening up “key routes” to third party operators would bring much-
merely a milestone along the journey needed investment for upgrading, maintenance and rehabilitation.
towards zero harm. Noting that on
matters of employee health and safety, Construction
all stakeholders should be on the same The growth of embedded generation after the removal of the cap will have positive
proverbial side, the need to continue and negative effects. While it means that mines will be directing their investment to
to focus on employee safety and power rather than mining, which will not grow mining output, it will have spin-off
wellness, in the workplace must remain effects in creating jobs and power for the communities surrounding the mines. There
a priority. will also be a local content requirement that in the longer term will help to create
The minister did not mention more domestic industrialization. This positive point was not identified by the minister.
amendments to the Mine Health and
Safety Act, but did say that a safe Making South Africa more attractive to investors
mine is a productive mine – reiterating Ramaphosa highlighted that South Africa presents a particularly attractive destination
that safety should remain a key for investors looking for opportunities in the green energy transition and the African
consideration of investors too. Continental Free Trade Area.
The President referred to the multi- This is an important, positive message. South Africa’s laws are considered some
disciplinary Economic Infrastructure of the most progressive in the world, and already ensure adequate consideration
Task Teams established by the SAPS of environmental, social, and governance risks, impacts and opportunities. Our Just
that were operating in 20 hotspots and Transition Framework was commended at COP27 and is being used as a benchmark for
had already made a number of arrests. other developing countries to contextualise their own transition journeys. Our policy
Transnet has developed relationships landscape is progressing as international developments drive action.

SUBSCRIBE FREE energize Issue 3 | 2023 | 5