South Africa’s mining sector is struggling due to delays in establishing a functioning cadastral system, which is essential for licensing exploration and other mining activities. The Minerals Council warned parliament about this issue during a recent meeting, highlighting the country’s fall behind global peers.
The lack of a transparent online cadastral system is hindering mining activities, making it difficult to track licensing and move forward with exploration. The government’s failure to coordinate policies across various portfolios is further impeding progress in the mining sector.
The decline in mining activity has caused concern, with South Africa’s contribution to GDP dropping. The country lacks a steady pipeline of new mines and is receiving less than 1% of global exploration expenditure. This situation is leading to a significant investor strike in the private sector.
It is crucial for the government to address these challenges and support the mining sector to boost economic growth. The portfolio committee plans to engage with mining and petroleum sectors in the coming months, aiming to find solutions to revive the industry.