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South African regulator not doing enough to promote junior mining – mining lawyer

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South African regulator not doing enough to promote junior mining – mining lawyer

Posted on : 05-07-2023 | Author : Martin Creamer

Photo by Stephen Philpott on Unsplash

The recent Junior Indaba highlighted concerns that the South African regulator is not adequately supporting junior mining in the country. According to Hulme Scholes, a director and mining lawyer at Malan Scholes Attorneys, the government should focus on reducing red tape associated with the Minerals and Petroleum Resources Development Act. The application system for prospecting and mining rights needs to be improved to prevent manipulation by corrupt officials. Additionally, Scholes emphasized the need for the government to prioritize combating crime in the mining industry.

Stable electricity supply is another critical requirement for the mining sector. Without a clear power plan, it becomes challenging for mining companies to effectively plan their operations. Scholes emphasized that the local control of crime is crucial because mining operations cannot be easily relocated to areas with lower crime rates. Mining companies are increasingly investing significant portions of their budgets in crime prevention measures, a responsibility that should be carried out by the State.

Scholes also highlighted the frustration of communities who rely on mining companies to meet their basic needs, as the government fails to provide adequate services. This frustration sometimes leads to violent behavior and attempts to extort mining companies. The regulatory environment in South Africa has the potential for expansion, but there is a lack of government support and policy drivers to stimulate growth in the mining industry. Despite this, Scholes believes there is still significant mining potential in the country. While South Africa has advanced laws in place, the challenge lies in enforcement and policing, particularly in relation to environmental regulations.