Mining experts urge stakeholders to have their say on South Africa’s draft Minerals bill as Minister makes corrections this week

The Bill’s current wording would significantly change the industry’s governing legislation, the Mineral and Petroleum Resources Development Act (MPRDA), says Warren Beech, a leading South African mining expert who is among a growing chorus of industry figures urging stakeholders to have their say on the draft Bill. 

“The proposed amendments to the MPRDA are extensive and will introduce provisions relating to small-scale and artisanal mining, and regulation of associated minerals, enhanced provisions relating to the beneficiation of minerals or mineral products, and increased consultation obligations,” says Beech, CEO of leading mining, natural resources and energy focused firm Beech Veltman Inc. 

The Bill will also extend what constitutes a mine, and introduces enhanced sanctions for non-compliance with the MPRDA, among related aspects. 

Beech and other leading South African mining experts are encouraging stakeholders in the mining sector to make written submissions before the 13 August deadline. 

“The proposed amendments substantially expand the authority of the Minister and introduce mandatory beneficiation requirements, transformation objectives, and transfer approvals, while introducing stricter consultation requirements and enhanced penalties,” says Beech, while offering a detailed critique of the draft Bill. 

“Rights and permit holders should carefully assess their current operations against the proposed amendments to the MPRDA and consider submitting detailed comments during the consultation period. The entire industry would benefit from engaging proactively with the Department of Mineral and Petroleum Resources to ensure that the final amendments to the legislation balances regulatory objectives with practical implementation considerations and investment certainty.”

Speaking at the Minerals Council Annual General Meeting on 28 May, Minister of Mineral and Petroleum Resources Gwede Mantashe said revisions to the MPRDA is a discussion that is open, but the government was not going to compromise on BEE. 

“If you want to challenge something, prepare your case, because if you think you can take us to court, talk to us first,” said the Minister. “We want to revise the Act, but we are not going to remove provisions for black economic empowerment.”

This week, the government corrected the draft amendments to clarify that BEE partnership was not needed before applying for a prospecting licence, a point left unclear when Minister Gwede Mantashe spoke at the Mineral Councils AGM.

Examining the draft Bill, Webber Wentzel’s expert Mining Sector team highlights “several noteworthy amendments to the current regulatory framework”, including the separation of petroleum and mining regimes, prohibitions on assisting or providing services to illegal miners and the transportation of minerals without prescribed documentation, resolving confusion about application of health and safety laws, introduction of the ‘associated mineral’ concept, and requirements for meaningful community consultation regarding social and labour plans,

It also establishes a Ministerial Advisory Council to address sustainable resource development, transformation growth, beneficiation terms and conditions, and other ministerial referrals, and a Regional Mining Development Environmental Committee with responsibilities for adjudicating objections and making recommendations.

Many industry stakeholders and legal experts have expressed concerns about the draft Bill’s potential impact on mining investment and operations in South Africa. 

On Wednesday, following the Minister issuing corrections this week relating to BEE and prospecting licences and deletion of a proposal to require Ministerial consent for the transfer of a controlling interest in listed companies, the Minerals Council South Africa stated the Bill in its current form still did not “encourage or sustain the growth and investment that the mining industry needs to realize its full potential” to create employment, stimulate the economy and fulfill its social mandate.

Public comments can be submitted until 13 August 2025.