Minerals Council South Africa Reports Constructive Dialogue with Government Over Proposed Mineral Resources Development Bill

Paul Dunne of the Minerals Council sees positive signs in mining bill talks. Read about the economic impact of PGMs and the push for regulatory stability.

By: AXL Media

Published: Mar 19, 2026, 9:49 AM EDT

Source: The information in this article was sourced from Mining Weekly

Anticipating a More Pragmatic Regulatory Framework

The Minerals Council South Africa is currently awaiting the second draft of the proposed Mineral Resources Development Bill with a sense of cautious optimism. Speaking at the PGMs Industry Day in Johannesburg on March 19, Council President Paul Dunne indicated that recent signals from the government suggest that the industry's primary concerns are being heard. Dunne noted that while the original form of the Bill was viewed as a deterrent to growth, the ongoing engagement with Minister Gwede Mantashe suggests a shift toward a more pragmatic policy. The industry maintains that a stable and predictable legislative environment is the fundamental prerequisite for attracting the international capital necessary to sustain long-term mining operations.

The Socio-Economic Weight of the PGM Sector

South Africa’s Platinum Group Metals (PGM) industry remains a cornerstone of the national economy, accounting for 80% of the world’s mined PGMs. According to Dunne, the sector's growth is inextricably linked to national economic health, employing approximately 170,000 people. When considering extended family dependencies and the direct supplier base, the broader mining sector supports an estimated 3.5 million individuals. Dunne highlighted that mining contributes 6.2% to the national GDP and accounts for R816 billion in exported products—nearly 45% of South Africa's total exports. These figures underscore the high stakes involved in legislative reform, as the sector also contributes roughly 10% of total corporate tax collections.

Addressing Infrastructure and Administrative Barriers

Beyond legislation, the mining industry continues to face significant headwinds related to failing infrastructure and administrative delays. Dunne pointed out that the cost of capital for new projects increases significantly in jurisdictions plagued by regulatory uncertainty, crime, and corruption. The Minerals Council has been vocal about the repercussions of "State capture" on electricity supply and logistics, which have historically led to deindustrialization. Current advocacy efforts are focused on the urgent rollout of a national mining cadastre and the removal of unnecessary delays in licensing authorizations. The industry argues that unlocking the potential of both traditional and future-facing minerals requires a total removal of thes...