“Mining and its direct suppliers support nearly 900,000 jobs and the livelihoods of 3.6 million South Africans.
“Mining is a powerful multiplier. Growing mining grows the economy and jobs.
“The way to grow the mining sector is through investment, which needs a globally competitive regulatory and operating environment.
“We are heading in the right direction, but we are not there yet,” says Mthenjane.
However, he cautions that the mining sector cannot improve investor confidence alone.
Adding that it is only through partnerships, particularly with the government and, specifically, the Department of Minerals and Petroleum Resources (DMPR), that a collaborative approach to creating a conducive regulator and operating environment can be created and sustained.
Mthenjane said that the first iteration of the Mineral Resources Development Bill, gazetted in May 2025, was disappointing.
According to Mthenjane, it did not encourage or sustain the growth and investment that the mining industry needs to realise its full potential to create employment, stimulate the economy and fulfil its social mandate.
“The lifeblood of mining is exploration. Without it, the mining sector has no future,” said Mthenjane.
Statistics South Africa data indicate that exploration expenditure was R781m in 2024, down from a peak of R6.2bn in 2006.
Mthenjane says this is deeply troubling for the sector and requires urgent attention.
“Since May last year, we have held talks with the DMPR on our submission regarding areas of concern for our members with the bill,” says Mthenjane.
Mthenjane says that as these engagements were generally constructive, the MCSA expects the revised bill will reflect its inputs to ensure mining attracts investment in exploration, development and existing operations.
“We are cautiously optimistic, but if the revisions mirror the first iteration of the bill, we will continue robust engagements with the DMPR,” adds Mthenjane.
The MCSA has noted that encouraging progress has been made in the business and government partnership in Operation Vulindlela under the Presidency to address three key crises that South Africa faced in 2020.
Moreover, railway performance has stabilised and is showing improvement, which is important for coal, chrome, iron ore and manganese exports.
Eskom’s improved performance has seen stable electricity generation, with the last loadshedding experienced in May 2025.
Mthenjane says Operation Vulindlela initiatives to address crime and corruption helped secure South Africa’s removal from the Financial Action Task Force (FATF) Grey List and contributed to an S&P credit rating upgrade in the last quarter of 2025.
The MCSA warns that the underlying structural reforms, particularly in electricity, around the creation of a separate transmission company to own and manage the grid, to ensure the introduction of the private sector in energy generation and participation in railways and at harbours, must not be delayed or changed because it will damage the green shoots of positive sentiment emerging towards South Africa.
“South Africa’s mineral endowment is extraordinary.
“With the right reforms, strong partnerships and policy certainty, we can attract investment, create jobs and build a globally competitive mining sector that benefits all South Africans,” Mthenjane says in conclusion.
