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Mineral Resources (DMR) Assumes the Custodianship of All Mineral Resources in South Africa on Behalf of Its Citizens

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The Department of Mineral Resources (DMR) assumes the custodianship of all mineral resources in South Africa on behalf of its citizens. To this end, the DMR promotes and regulates the Minerals and Mining Sector for transformation, growth and development as well as ensures that all South Africans derive sustainable benefit from the country’s mineral wealth. Various specialised divisions of the DMR and associated institutions are responsible for the administration of the mining and regulations and for promoting the development of the industry. Mining is regulated by three branches, namely the Mineral Policy and Promotion Branch, Mineral Regulation Branch and the Mine Health and Safety Inspectorate. The Mineral Policy and Promotion Branch is responsible for formulating mineral related policies and helps promote the mining and minerals industry of South Africa to make it attractive to investors. The branch consists of four Chief Directorates: • Mineral Policy, which develops new policies, reviews existing policies and amends legislation to promote investment growth and achieve transformation in the minerals and mining industry • Economic Advisory Services that undertakes macroeconomic research and analysis, to inform Executive Management and the department in their engagements with industry stakeholders • Mineral Promotion promotes mineral development and advises on trends in the mining industry to attract additional investment • Mine Environmental Management that provides strategic guidance to mine environ- mental management and mine closure issues, including the management of derelict and ownerless mines. The South African mining and minerals industry has played a key role in the country’s economic development, which has transformed South Africa into the most industrialised country in Africa. It has also been the principal driver of the current infrastructure network, which now underpins jobs in many other sectors. The South African government’s development policies, the National Development Plan (NDP) and the New Growth Path (NGP), both recognise Mineral the critical role that mining contributes in growing investments, exports, gross domestic product (GDP) and job creation. In this respect government, organised labour and industry have, through the Mining Industry Growth, Resources Development and Employment Task Team (MIGDETT) undertaken several initiatives aimed at resolving the challenges facing the industry. 301 ArtsMineral and resources Culture Other policy interventions aimed at addressing with particular focus on supply and demand structural imbalances and tackle high levels of side interventions to position them along a re- unemployment, poverty and inequality have covery path and a trajectory of long-term sustain- either been developed or are currently being ability through the well-established tripartite developed. Principal among these are the structure of Mining Growth, Development and National Development Plan (NDP), Develop- Employment Task Team. mental Growth Path (DGP), Industrial Policy Platinum and gold were among the largest Action Plan (IPAP), the Ten Year Innovation sectors of South Africa's mining industry in Strategy as well as the Beneficiation Strategy. terms of employment, investment and revenue The IPAP identifies areas where employment generation. could be leveraged and Key Action Plans (KAPs) The strategic goals for the Department of to achieve the employment growth. Mineral Resources (DMR) are to: The mining industry is a well-established and • promote and facilitate an increase in mining resourceful sector of South Africa’s economy activity and in value added to mineral and has a high degree of technical expertise resources extracted in South Africa as well as the ability to mobilize capital for new • implement transformation policies that redress development. It has provided the impetus for past imbalances through broader participation the development of an extensive and efficient in the mineral sector physical infrastructure and has contributed • provide a framework for managing health and greatly to the establishment of the country’s safety risks, enforce compliance and promote secondary industries. With the diversity and best practice in the mineral sector abundance of its natural resources, South Africa • promote sustainable resource management, is a leading producer and supplier of a range contribute to skills development and the of minerals and produced approximately 53 creation of sustainable jobs in the mining different minerals from 1 712 mines and quarries sector in 2013. Gold was produced from 53 mines, • contribute to a reduction of the adverse platinum-group metals (PGMs) from 43 mines, impacts of mining on the environment coal from 143 mines and diamonds from 388 • attract, develop and retain appropriate skills mines, all as primary commodities. and ensure the optimal utilisation of resources The mining industry remains the biggest • implement risk management strategies and contributor to the country's gross domestic promote corporate governance. product; however unrest in the industry has led to stoppages in mining production that have Legislation and policies hampered growth, according to figures released Some key legislation and policies relating to the by Statistics South Africa and the South African DMR are the: Reserve Bank in July 2014. • Mineral and Petroleum Resources Develop- Government's industrialisation policy calls for a ment Act (MPRDA), 2002 (Act 28 of 2002). The paradigm shift in mineral development, strategic promulgation of the MPRDA of 2002 in 2004 investment in assets to maximise long-term introduced a policy of equal access to South growth beneficiation projects, enhanced value Africa's mineral resources. This democratic of exports, increased sources for consumption mineral dispensation introduced the policy of of local content, and creation of opportunities for socio-economic responsibility, which was to sustainable jobs. be achieved through the application of Black In 2014, the Mineral Beneficiation Action Economic Empowerment (BEE) Policy by Plan was being developed to advance local ensuring that historically disadvantaged South value-addition across five mineral value-chains, Africans are brought into the mainstream of namely iron-ore and steel, platinum group mining. However, challenges experienced metals, polymers, titanium and mining inputs. in implementing these policies resulted in The Department of Trade and Industry(dti) also the need to review the MPRDA of 2002. The worked on a plan which will be a component of objectives of the review are to: the Industrial Policy Action Plan (IPAP). - provide for a detailed consultation process The platinum and gold sectors had been - support the beneficiation strategy negatively affected by the persistent global - streamline the licensing process to avoid economic market environment, which had an delays and inefficiencies adverse bearing on their long-term viability. - provide for enhanced punitive measures The rescue plan is expected to enable the - improve the current construct of the Act and department to find appropriate government-wide remove ambiguities, and provide clarity on measures for appropriate sector-wide responses, the mining of associated minerals. 302 SOUTH AFRICA YEARBOOK 2014/15 • Mineral Health and Safety Inspectorate of the • The draft Mineral and Petroleum Resources DMR, established in terms of the Mine Health Development Amendment Bill, which was and Safety Act, 1996 (Act 29 of 1996) as introduced to Parliament in May 2013. The draft amended, which is responsible for protecting Bill aims to enhance provision for the benefi- the health and safety of mine workers and ciation of minerals to promote industrialisation people affected by mining activities. and contribute to the nation's objectives of job • The Council for Geoscience (CGS) was creation and economic growth as envisaged in established in 1993 under the Geoscience Act, the National Development Plan (NDP). 1993 (Act 100 of 1993). African Exploration Mining and Finance • Geoscience Amendment Act, 2010 (Act 16 of Corporation Bill 2015 (AEMFC Bill): The depart- 2010), expands the functions of the CGS by: ment is in the process of developing a draft Bill - mandating the CGS to be the custodian and referred to as the African Exploration Mining curator of geotechnical information; to be and Finance Corporation Bill, 2015. The draft a national mandatory advisory authority in Bill has been forwarded to the Office of the respect of geohazards related to infrastructure Chief State Law Adviser (OCSLA) for pre- development; to undertake explo-ration and certification. The OCSLA has certified that the prospecting research in the mineral and draft Bill conforms to the requirements of the petroleum sectors; and to add to the functions Constitution. The draft Bill will be published for of the council public comments upon Cabinet approval.The - putting mechanisms in place to address purpose of the AEMFC Bill is to provide for: problems associated with infrastructure deve- - establishment of African Exploration Mining lopment on dolomitic land and Finance Corporation as a creature of - empowering the CGS to be the custodian of statute all geotechnical data to compile a complete - consolidation of the directly held State interest geotechnical risk profile of the country in mining assets - enabling the CGS to become the custodian of - objects and functions of the African Exploration technical information relating to exploration Mining and Finance
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