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Top officials have challenged the notion of “policy uncertainty” in mining, despite acknowledging that the department of mineral & petroleum resources (DMPR) is addressing administrative shortcomings that have frustrated businesses.Speaking during a panel discussion at the Junior Indaba — which brought together explorers, junior miners, and officials in Joburg this week — DMPR director-general Jacob Mbele said there was, in fact, policy certainty in mining.“The moment we say there is policy uncertainty, we give the impression that, from a high-level political point of view, there’s dilly-dallying about a sector in the country, and I want to argue that that is not the case.”He said there had been no examples, during his tenure, of the government revoking mining rights. “If we keep on saying ‘policy uncertainty’, we’re going to end up fiddling in the wrong place with the laws when it is actually not the laws. By harping on this point, we actually create policy uncertainty,” he said.The industry has previously argued that policy uncertainty stems from concerns around security of tenure in the Mineral and Petroleum Resources Development Amendment Bill (MPRDA), which proposes major changes to mining law.Mbele said that despite concerns about policy certainty, the DPMR continued to receive queries about investment opportunities in South Africa. “I’ve recently been in rooms where we’re engaging investors, and they are interested in hearing what is positive about the country, and we’re the ones telling them that there’s ‘policy uncertainty’; we’re shooting ourselves in the foot,” he said.Mbele said that over the next year, the DMPR will focus on addressing administrative shortcomings, including waiting times for mining licences, which he described as “unacceptable”. He also said a review of the permitting system was under way, including the verification of permits.Mosa Mabuza, CEO of the Council for Geoscience, which is responsible for geoscientific research, said the industry often took a negative view of mining, reducing the likelihood of attracting investment. “The prism through which we look at our opportunities in South Africa ordinarily takes a very negative posture of, I‘d argue, self-destruction, in that we argue ourselves out of being supported and then wonder why financiers are not supporting South African projects.” He said South Africans often relayed negative messages about the industry on public platforms. “What do you expect when you stand here and say there is ‘policy uncertainty’? It’s horrible. What will happen? Would you invest in an environment where the citizens are being overly negative?”South Africa’s mining industry, one of the world’s more mature mining jurisdictions, was nevertheless rated among the 10 least attractive investment destinations in the Fraser Institute’s annual mining survey, which assesses them based on policy attractiveness and mineral potential. South Africa ranked 75th out of 84 jurisdictions surveyed in 2025.Mzila Mthenjane, CEO of Mineral Council South Africa, said there was a difference between political risk and policy uncertainty. “Political risk is not what is in contention in South Africa, but policy certainty is a concern.”He cited, for example, delays caused by the processes of different departments responsible for prospecting and mining rights. “There’s no certainty that my expectations can be met when applying; that is one example.”Mthenjane said differences in the interpretation of applications between regional offices and the DMPR’s head office also contributed to uncertainty.Junior Mining Council founder and president Fred Arendse said that because of their size, junior miners were often not equipped to comply with policy requirements. “If regulators can create mechanisms to allow for those differences, it will really help the industry,” he said.However, the department of trade, industry & competition’s strategy for economic growth — published this week, and through which the government aims to impose tariffs on chrome exports — was also described as an example of policy uncertainty.“This is the destruction of our industry — not what we do, but how we do it,” said Bernard Swanepoel, Junior Indaba chair and former Harmony Gold CEO.The strategy document said a review of mining legislation on the allocation of mineral rights is ‘critical’ to allow the state to attach conditions that must facilitate beneficiation. “This shift is crucial because it will allow beneficiation objectives to be embedded in mining licensing decisions.”Mbele said the document was merely a proposal. “What is law is what goes into the MPRDA, so it is not law,” he said.On delays in implementing a modern cadastral system, which have deterred investment, Mbele said the system was being rolled out in the Western Cape and will subsequently be introduced in the Free State, Eastern Cape and KwaZulu-Natal.“We’re going there because our analysis indicates that the data issues in those regions are not as big as other regions, and we will be able to move quickly,” he said.The government is introducing a digital cadastral system aimed at mapping South Africa’s mineral endowment, showing ownership and value, and limiting opportunities for corruption.
