Minerals Council warns regulatory uncertainty threatens mining investment

The Minerals Council of South Africa says more needs to be done to bridge the policy gap in the mining industry amid concerns that an overhaul in regulation could dampen investor sentiment.

Uncertainty about the Mineral and Petroleum Resource Development Amendment Bill is among the issues the council has raised. The bill could see key changes in the local mining industry, including tighter rules for the application for prospecting rights.

CEO of the Minerals Council, Mzila Mthenjane, addressed the matter at the Mining Indaba currently underway in Cape Town. He says open dialogue between the industry and government is critical to address a range of other matters, including transformation.

“Because I think at the end of the day, both shareholders and government as a representative of national priority are seeking the same thing," Mthenjane said. "From a shareholder perspective, it needs to be financial return, and from a government perspective, it needs to be a combination of social through employment, through community investment, but also, you know, fiscal benefit in terms of taxes.”