Minerals Council warns against Govt “sandbagging”

THE Minerals Council of South Africa has once again appealed to government to assist rather than block the growth of the country’s mining industry.Addressing PGM Day 2026, a conference, Minerals Council President Paul Dunne was emphatic “about the need for a regulatory and operating environment that attracts investment and encourages and sustains growth”.This comes as the government is working on an update to the Minerals & Petroleum Resources Development Act in its Mineral Resources Development Bill, tabled in June last year. The bill drew the ire of the mining industry with Dunne leading the way. He warned miners would take contentious parts of the bill to court.Commenting during the conference on Thursday, Dunne warned against “sandbagging”, namely getting hit by bad surprises “as has happened in this country historically”.It is an appeal that has been heard numerous times over the past few years, but Dunne’s comments had a renewed urgency at a time when the PGM industry is experiencing stronger prices and looking into investment for future growth.Dunne said it costs at least R20bn and 10 years to build a decent sized mine. “Very few mining companies have that type of money lying around on the balance sheet, so we need to operate in an environment that allows us to attract capital in the form of debt or equity to fund projects.“However, providers of capital will not put their money into risky jurisdictions where returns are threatened by regulatory uncertainty, crime and corruption and failing infrastructure,” he said. “As long as the legislative uncertainty remains it will delay projects that could have moved on by now.”The track record to date on finding a favourable response from Mineral Resources Minister Gwede Mantashe is poor. Dunne remains positive though and he believes that government will acknowledge the industry’s response to Mineral Resources Development Bill.“We do see positive signals from government, and we await the second draft of the bill. It is our expectation that our concerns will be addressed and – for now – the Minerals Council is satisfied that we are being heard.”It was extremely important for both investment and job creation “that rational outcomes prevail, and not inappropriate policy responses to misdiagnosed problems.“This is the fundamental starting point of all our discussions with Minister Mantashe. The mining industry has been severely constrained during the past three decades by regulatory uncertainty, weak administrative processes, unnecessary delays in licensing authorisations, as well as the severe repercussions that state capture has had on electricity supply and costs as well as logistics.“Hard commodities in general and PGM’s in particular have a very bright future ahead and in order for South Africa to benefit fully, obstacles need to be removed and not created,” said Dunne.The post Minerals Council warns against Govt “sandbagging” appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com