PODCAST | SA mining law in the spotlight

Many mineral and upstream petroleum law developments have occurred in the past year, with the sector dealing with change on many fronts.

In this edition of Business Law Focus, host Evan Pickworth interviews Ntsiki Adonisi, executive and head of ENS’ natural resources and environment practice, and Otsile Matlou, ENSafrica’s COO, about the sector's future.

We also dig into the effects of SA’s Mineral and Petroleum Resources Development Act 28 of 2002, which is celebrating its 20th anniversary.

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The context

At the heart of the Mineral and Petroleum Resources Development Act of 2002 (MPRDA) was the need to address the basic human rights of the people of SA as enshrined in the Constitution, in particular the mineworkers and communities. After 20 years it is important to analyse whether these goals have been achieved and what the future may hold, notably in filling any gaps while assisting businesses and explorers to thrive.

Pursuant to section 100 of the MPRDA was the introduction of the Mining Charter in 2004 to effect socioeconomic transformation in the mining industry. there have been successes. For instance, today, more than 72,000 mineworkers are women, with some holding executive positions in big mining companies.

According to government, it is regrettable that, 20 years after the enactment of the MPRDA, the industry has not fully embraced these regulatory instruments. This is evidenced, it says, by the sustained legal battles on transformation, which depicts the industry’s resistance to the transformation agenda.

Section 2 of the MPRDA sets out, among others, the following objectives: to give effect to the principle of the state's custodianship of the nation's mineral and petroleum resources and to promote equitable access to the nation's mineral and petroleum resources.

In July 2023, the mineral resources and energy minister hosted a two-day review summit on the Mineral and Petroleum Resources Development Act . The department said they woud commence drafting an MPRDA amendment bill.

The recent Mining Indaba, however, highlighted many business challenges in the mining sector, notably port and power chaos and licensing backlogs. Illegal mining continues to raise its head as a major risk to the sector, with too little being done to stop it.