WATER supply disruptions are emerging as a significant threat to South Africa’s mining sector, with bulk supply in multiple regions subject to frequent interruptions during 2025, said Business Day citing the Minerals Council South Africa’s annual review.
The review, covering the year ended December 31, called for policy certainty, infrastructure reform and reliable energy and water systems to sustain investment, said Business Day. The review was published at the council’s annual general meeting which took place on Wednesday.
The council said discussions with the department of water and sanitation had focused on the National Water Act, the Water Services Amendment Bill, water-use licensing and broader water stewardship, with engagement centred on a risk-based licensing approach that distinguishes between high-pollution and low-impact activities.
“Water is essential to both communities and operations, and strengthening maintenance capacity, governance and investment in water infrastructure must become a national priority,” the council said in its report.
South Africa’s mining sector employed 470,457 people in 2025 and paid R200bn in wages and R124bn in taxes, contributing R477bn, or 6.2%, to GDP.
Council president Paul Dunne told the AGM that regulatory uncertainty was among the chief reasons the industry had failed to fulfil its potential in the 22 years since the Mineral and Petroleum Resources Development Act took effect in 2004. He noted the sector’s GDP contribution was virtually unchanged from the 6.3% recorded when the act was gazetted.
“South African mining is not — and has not been — growing in any meaningful way for a multitude of reasons, including electricity shortages, above-inflation energy tariffs, logistics bottlenecks, regulatory uncertainty and poor administration of the law,” Dunne said.
The council also flagged concern over the draft Mineral Resources Development Bill, which critics say imposes more onerous prospecting requirements without resolving regulatory uncertainty. The government contends the bill will streamline licensing and promote local beneficiation.
