MINERALS BOOST: Mining sector’s relationship with Mantashe on the rebound

The Minerals Council SA and the Department of Mineral Resources and Petroleum (DMPR) have for years had a relationship that ran hot and cold.

At times they have come across as the best of friends; at others their relationship has been testy or downright stormy, and there was a low point almost a decade ago under the alleged Gupta stooge Mosebenzi Zwane when the council – the main industry body for South Africa’s mining sector – was not even on speaking terms with the minister of the then DMRE (read: Gwede Mantashe).

The most recent cold spell now seems to be in a thawing stage, and that holds the promise of sunnier days ahead for South Africa's mining industry and the wider economy.

This was on display on Wednesday, 7 October at the annual Joburg Mining Indaba organised by Resources For Africa.

Best of friends

In the keynote address to the gathering, council president Paul Dunne – who is CEO of Northam Platinum – unveiled aspects of a growth and investment strategy that includes partnering with the DMPR to unlock the industry’s unrealised potential.

This includes fresh collaboration on getting the long-delayed mining cadastre – seen as crucial to attracting investment to the sector – up and running by its 31 March, 2027 deadline.

“The DMPR and the Minerals Council share joint accountability to ensure this process delivers the outcomes that we have committed to. There are three mining work streams agreed to with the DMPR,” Dunne said.

The first is a focus on... “administrative bottlenecks affecting mining projects with the objective of unlocking more than R50-billion in capital expenditure by February 2028.”

“The second work stream will address competitiveness gaps and a clear understanding of the reforms required to strengthen South Africa’s position as a mining destination... A successful outcome for the Mineral Resources Development (MRD) Amendment Bill falls within this scope,” Dunne said.

There have been many bones of contention over this Bill. The ongoing discussions between the department, the Minerals Council and other stakeholders have been kept under tight wraps. This includes disputes over BEE clauses, and the initial wrangling 18 months ago was the latest cold front to rain on the relationship.

But Daily Maverick understands progress is being made, and the Government of National Unity (GNU) will probably restrain the more interventionist elements in the ANC.

Pointedly, Dunne also highlighted a joint effort on the mining cadastre – a breakthrough as the department has long resisted the council’s offers of help, including financing.

“The third work stream supports the DMPR’s national implementation of a transparent and efficient national mining cadastre by March 2027,” Dunne said.

A map to your heart

Daily Maverick understands that this will involve funding for support staff and data capture. The clock is ticking, and both the DMPR and the Minerals Council want no further delays in the cadastre roll-out after years of false starts and changing timelines.

A functional mining cadastre displays the state of play of mining rights in a country and its geology, and enables companies to seamlessly apply for such rights in a transparent manner.

The lack of one is seen as the main reason behind application backlogs for mining and prospecting rights and permits, and the lack of transparency fuels suspicions of corruption in the DMPR’s regional offices.

This is a key deterrent to investment in South Africa’s mining sector, notably for exploration.

South Africa’s mining sector, it must be said, is showing promising signs of a turnaround.

“South Africa’s mining sector entered the 2026 reporting period on firmer footing, supported by higher precious-metal prices, improved mineral reserve positions and growing interest in critical minerals,” PwC said in its latest annual report on South Africa’s mining sector, which was released this week.

“Commodity prices provided significant upside during the period, with average USD gold and platinum prices for July 2025 to June 2026 increasing by 50% and 80% respectively compared with the previous 12-month period. At the same time, investment, technology and project development contributed to improved reserve positions across key commodities. The combination provides a positive platform for the sector.”

The report also noted that R70-billion in investment is currently committed and ready for implementation in South Africa’s mining sector.

Fruitful partnerships between the DMPR and the industry can build on this momentum.

Minister Mantashe is scheduled to give the closing address on Thursday, and that will be the next clear indication of this state of affairs.

Hopefully, the current thaw becomes a permanent state of warming. DM