The draft Mineral Resources Development Bill (MRDP) has been met with criticism, particularly on the clauses concerning BEE (Black Economic Empowerment) in South Africa's mining exploration. Many stakeholders argue that the imposition of BEE will discourage investor interest, which will hinder mining exploration and, in turn, job creation and economic growth in South Africa. With this in mind, Paul Dunne — Minerals Council South Africa president and Northam Platinum CEO — set out to answer the question of whether or not it's possible to drive economic growth and transformation simultaneously in South Africa. Dunne delivered a keynote address at the 2025 Joburg Indaba in Sandton.
Paul Dunne — Minerals Council South Africa president and Northam CEO — delivered a keynote address at the 2025 Joburg Indaba in Sandton. Image supplied.
Inextricably intertwined
He says that the growth and transformation of South Africa's mining industry are not mutually exclusive but rather inextricably intertwined.
"We can’t have one without the other, and we need a stable, predictable regulatory environment that promotes both," he said.
Dunne says that the MCSA agrees with the Minister of Mineral and Petroleum Resources, Gwede Mantashe's sentiment that the mining industry is the most transformed sector in the South African economy.
According to Dunne, mining has made substantial strides in transformation and addressing the historical injustices of the past.
One of which is the inclusion of women, who now account for a fifth of the mining workforce. Before 1994, women were not legally allowed to be a part of the underground workforce. "A degree of stigma and even superstition has been overcome, and we are better off for it," says Dunne.
Other progress outlined by Dunne includes:
- HDSA ownership: A 2019 MCSA study, which reviewed progress made on the Mining Charter 2010, found that the respondents represented 70% of total sector production and achieved a 39% HDSA (Historically Disadvantaged South Africans) shareholding, surpassing the 26% target.
- SLPs: The mining sector spends more than R3 billion annually on social and labour plan (SLP) projects and commitments, building houses, schools, roads, bridges, clinics, water, and sanitation infrastructure.
- EE: An Employment Equity study undertaken in 2023, of members representing about half of the industry’s workforce, showed that in many occupational levels, targets were met and exceeded, and that, overall, the industry was close to achieving most targets.
"These contributions were made despite the industry facing headwinds of a difficult operating and regulatory environment, which has reduced the contribution of mining from historic levels," he said.
Risky business
The MCSA believes that the draft MRDP, in its current form, does not encourage the growth and investment that the mining industry needs to create jobs, stimulate the economy, and fulfil its social mandate.
After submitting its concerns, the MCSA has indicated that it remains constructively engaged during the consultation phase. Adding that it anticipates a short period before a redraft emerges, "potentially extending into the new year".
Given the amount of time and money needed to build mines in South Africa (Dunne says it costs R20bn and 10 years to build a "decent-sized" mine), Dunne says that companies must operate in an environment that allows them to attract capital in the form of debt or equity to fund projects.
He adds that investors will think twice about putting their capital into "risky environments", which will threaten their returns given a plethora of issues, ranging from regulatory uncertainty, crime and corruption to failing infrastructure.
"It is critical for mining companies and investors, throughout the value chain, to have a pragmatic, stable regulatory environment that attracts investment rather than discourages it by onerous, globally uncompetitive policy," says Dunne.
The MCSA has been engaging with the Department of Mineral and Petroleum Resources (DMPR) and other governmental stakeholders to ensure that the South African mining sector remains attractive to international investors.
So, in conclusion, Dunne asks: "Can we achieve growth and transformation at the same time?”
He says, “Of course, we can, but we must ensure an enabling policy framework that attracts and retains the capital...to do so.
"Mining is a very people-centric industry, and we are deeply connected to the fabric of society at the ground level. It is important that we succeed!"
