Uncertainty around the Mineral Resources Development Amendment Bill is not good for investor confidence.
The first day of Investing in African Mining Indaba has kicked off with the Minerals Council South Africa highlighting some concerns surrounding the Mineral Resources Development Amendment Bill.
From Tuesday until Thursday, Cape Town will house government officials, mining executives and investors to discuss the continent’s state of mining.
The Mining Indaba is described as the world’s largest, premier conference dedicated to African mining, focusing on investment, innovation, and sustainable development.
ALSO READ: ‘What miners want’: Minerals council CEO on industry’s role in SA
The bill is ‘disappointing’
Council CEO Mzila Mthenjane, addressing journalists at the State of the Mining Nation media briefing in Cape Town, said they found the bill, first published in May 2025, “disappointing”.
“It did not encourage or sustain the investment and growth that the mining industry needs to realise its full potential to create employment, stimulate the economy and fulfil its social mandate,” he said.
The bill marks the most significant regulatory update to South Africa’s mining sector in almost 25 years, introducing major amendments to the 2002 Mineral & Petroleum Resources Development Act, the country’s cornerstone mining legislation.
Uncertainty surrounding the bill
In his address, Mthenjane added that there is uncertainty surrounding the bill, which is not good for investor confidence.
“The industry cannot thrive in an environment of policy uncertainty, where Acts are ambiguous and regulations discourage investment or are changed every few years, shifting goal posts, becoming more onerous or placing excessive obligations on ventures and established businesses,” he said.
“Exploration and mining investments need regulatory and fiscal certainty over extended periods of time, ensuring returns on large amounts of capital invested by shareholders.”
Mthenjane highlighted that it is important for the bill to create certainty, predictability and a competitive regulatory environment.
Concerns raised
He added that the council and the Department of Mineral and Petroleum Resources have discussed their concerns and look forward to the revised bill, which is expected to be published later this year.
“Since May last year we have held talks with the DMPR on our submission regarding areas of concern for our members with the bill. These engagements were generally constructive,” he said.
“We anticipate the revised bill, which we expect to be published in the coming weeks, will reflect our inputs to ensure mining attracts investment in exploration, mine development and existing operations.”
ALSO READ: Illegal mining bleeds billions from economy, says Mantashe
Africans must unite
In a different room, Minister of Mineral and Petroleum Resources Gwede Mantashe delivering his opening address at the conference, calling for African people to work together at a “moment of profound global uncertainty”.
“This year’s indaba convenes at a moment of profound global uncertainty. We are witnessing heightened geopolitical tensions, driven largely by the competition of some developed economies seeking greater control over the natural resources of developing nations,” said Mantashe.
“This dynamic represents a serious threat to the sovereignty of resource-endowed countries, the majority of which are here on the African continent.”
Is there hope?
Despite the minister not making mention of the Mineral & Petroleum Resources Development Amendment Bill during his address, industry players remain hopeful that the revised Bill will be published soon and will clear out any uncertainties.
“The minister did not mention the upcoming revised bill,” said Ziyanda Ntshona, partner at Herbert Smith Freehills Kramer.
“However, from our insights, we are hopeful to see the revised bill clarify long-standing grey areas, such as around residue stockpiles and beneficiation; prescribe time period for processing of applications; and alignment with matters regulated by other laws, such as BEE, labour relations, environmental matters and health and safety.
“The revised bill is expected to be published in the first quarter of this year. Government has been receptive of stakeholder comments and therefore we expect a bill that encourages partnership among the industry players, through clear and transparent regulation.”
Mining’s performance
Data from the Minerals Council show that while certain commodities are benefiting from higher prices amid global uncertainty, which has contributed to increased export revenues for 2025, the underlying performance of the sector remains concerning.
“Mining’s contribution to GDP fell to R439.2 billion from R442.7 billion in 2024, meaning mining made up 5.8% of the economy compared to 6% the year before,” said the Minerals Council.
“Gold and platinum group metals (PGMs) prices have reached record highs, but production of both commodities fell in 2025. Gold output has fallen by 1.9% in 2025.
“PGMs declined by 4.1% last year compared to 2024 and remains below pre-Covid 19 production levels. The majority of gold and PGM mines are deep-level, labour-intensive operations, with high operating costs and deferred capital expenditure.”
NOW READ: Why are rare earth elements so important – and does SA have any?