Minerals Council believes legal action over new mining bill may not be necessary

Mzila Mthenjane, CEO, Minerals Council SA

NEITHER the Minerals Council nor the Department of Minerals and Petroleum Resources (DPMR) wants to end up in court over the latest proposed amendments to the Mineral Resources Development Bill (MRDP).

That’s the view of Minerals Council CEO Mzila Mthenjane who, in a media presentation today, played down the aggressive reaction from Minerals Council president Paul Dunne at the organisation’s AGM in May to the draft legislation which had then just been released.

Dunne commented that, while the Minerals Council was “a very considered professional advocacy body” it would engage “very, very robustly with the DMPR”.

Dunne added, “the minister (mines minister Gwede Mantashe) knows us very well. We are very tough and, Minister, we are coming”

Those comments were taken at the time as a clear indication the Minerals Council intended to renew hostilities with the DPMR in court which it last did in 2021 when the High Court ruled against changes for new empowerment in the Mining Charter.

Asked whether the Minerals Council was going to play similar “hardball” this time around Mthenjane replied, “with the benefit of the lapse of time the mood has changed.

“The AGM was soon after publication of the Bill and we had only had a cursory read of the document so emotions were still high. Since then we have had a number of engagements which have given us the assurance that ending up in court is not something that we want or the DPMR wants either.

“We will take it one step at a time but from the progress we have seen so far in submitting our detailed submission I think there’s a possibility that we can avoid seeing ourselves in court.”

Mthenjane said that the Bill in its current form “does not encourage investment and growth that can create jobs and drive further transformation.”

He added, “the regulatory environment must be conducive to encouraging investment in exploration, mine development and sustain existing mining operations.

“It is of fundamental importance for the Minerals Council that the Bill creates certainty, predictability and a competitive regulatory environment while eliminating ambiguity in what will become the Act.”

Over the past 30 years the Government has time and again ignored the submissions and recommendations of the Minerals Council on new mining legislation opting instead for a more ideological and less pragmatic approach.

Asked why he thought it would be any different this time around Mthenjane replied, “we are all at risk in South Africa if we have an economy that does not function.

“The president has economic growth and job creation as his number one priority. I am not taking this on with any sense that the DMPR will not listen.  Our indication we have had from engagements at the highest level is that there is a huge willingness to listen and to consider the inputs we have given as the Minerals Council and as an industry.

“But we will take it one step at a time. We have given a detailed submission and we will see what the revised document looks like.”