DMRE needs to be taken into the 21st century to help build a prosperous nation
11 July 2024
Chairperson
Honourable Members
Ministers and Deputy Minister
It was just over 12 years ago that at the Mining Indaba, one of your predecessors promised a one-stop shop for the licensing of mining operations to facilitate investment. This would process exploration, mining and integrated water use license applications. This would be accompanied by a cadastral system that would improve transparency and efficiency.
Today we are still talking about the same.
Also, it was 17 years ago that I was involved in discussions with officials of this Department to regulate the increasing export of un-beneficiated chrome ore to China. At the time, the Chinese were using our ore to build a ferrochrome industry while we have a natural endowment that should make us a dominant player. Today, China is a major ferrochrome producer, partly at our expense. That intervention never happened even though there was a bilateral agreement with China that said minerals must be beneficiated at source.
What the Chinese are producing at home should be exported from South Africa, not produced in China.
Today, that same intervention against the export of un-beneficiated ore would probably sink a few major operators in that sector because they have come to rely on ore exports themselves. This is unsustainable. We need mining-subsector strategies immediately after this review, and a commitment to act with speed. We can no longer continue to be mere price takers even in minerals where we are supposed to be the dominant resource owner in the world.
The mining sector is a significant economic driver in South Africa, employing just under 500,000 people, with about R782-billion in exports last year.
Minister, these numbers sound impressive but they could be much bigger! But we need a strong, efficient and fair regulator that moves with speed. We cannot wait so many years while we have so much unemployment and poverty.
The same applies to prospecting rights and exploration licenses. If we are serious about growing economy and mining sector, the Department needs to among other things:
1. Fulfil the commitment to establish an electronic license tracking and issuing system.
Next year, Minister, we cannot be speaking about future activities next year.
2. I hope the amendments to the MPRDA you refer to will result in a one-stop shop for mining and related permits where the various permits can be obtained in a single location, with the inter-dependent departments working closely together.
3. Minister, please speak to the Minister of Finance about tax incentives for junior, and in particular women- and black-owned mining firms. Between you and the Minister of Trade, Industry and Competition, support these firms with, grants, competitive loans, and access to markets.
If we — all of us in this House — can achieve this, we can create more jobs, put food on tables, and build communities where people live happy and dignified lives.
Ndiyabulela!
Issued by Songezo Zibi, RISE Mzansi National Leader, 12 July 2024
