Abstract:
Mining has been one of the most significant contributors to South Africa's social and
economic progress. South Africa is endowered with a diverse of minerals and mining
activities are driven by large corporations and small-scale miners. However, the
legislative uncertainty undermines the role of the small miners in society and the
economy. This is despite interventions by the government, through legislation, which
affords everyone an opportunity to participate in mining, through acquiring prospecting
and mining right applications.
The promulgation of the Mineral and Petroleum Resources Development Act (MPRDA),
28 of 2002, was meant to address the imbalances of the past which amongst others
include inequitable access to “the nation's mineral and petroleum resources”. Some of
the requirements needed for exploration and mining rights applications to be granted have
been seen as stumbling blocks for Historically Disadvantaged South Africans (HDSA’s)
and emerging junior miners, to fully participate in the sector. For example, finances and
technical availability is one of the main reasons why HDSA’s haven’t participated fully in
the mining activities of the country. This study proposes a framework, which aims to assist
HDSAs and emerging miners to participate in the mining industry through acquisition
prospecting and mining rights.
The research data was collected in two phases. Phase one was the quantitative phase.
In this phase, questionnaires were circulated to more than 50 potential respondents
involved in the mining and related sectors. The quantitative data was analyzed statistically
for interpretation. The second phase of data collection was done through qualitative
method, where specific questions were sent to 10 experts in the sector. The results were
also analyzed through the identification of common themes and interpreted to contribute
to the design of the framework.
The results of this study show that although the MPDRA provides emerging junior miners
with the prospect to enter the mining industry, there are still barriers or hindrances
blocking them from entering the mining industry. Challenges ranged from the initial
compilation of documents, processing of the applications and requirements which need
to be met, to departmental challenges. The study reveals that historically disadvantaged
South African and emerging miners, do not have the necessary skills to compile
applications and attach relevant documents to meet certain regulatory requirements.
In addition, the study shows that the Department of Mineral Resources and Energy
(DMRE) expects historically disadvantaged individuals and emerging miners to provide
proof that they have the financial and technical ability to carry out the proposed
prospecting and mining right works programmes. Financial and technical requirements
have been the common areas that results in prospecting and mining rights applications
being declined. Moreover, the internal process at the DMRE seemed to favor large-scale
mining companies, who have financial resources and technical expertise to carry out
prospecting or mining rights.
The framework for streamlining prospecting and mining rights applications will create an
environment that enables indigenous people and emerging junior miners to obtain
prospecting and mining rights and will provide economic growth for smaller communities.
It will also afford the DMRE to have better control, by providing a section, which will be
dedicated to assisting historically disadvantaged people and emerging junior miners by
providing guidance in terms of the application process and also recommending for
funding.