The mineral resources and energy department has gazetted a correction to the Draft Mineral Resources Development Bill, 2025, to include a proposed licensing regime for artisanal and small-scale mining (ASM).
The current proposal formalises previously informal operations through demarcated ASM zones, streamlined permits and eligibility criteria accessible to community-based entities. According to the department, these measures aim to unlock inclusive economic growth, deepen beneficiation, and correct historical imbalances in access to SA’s mineral wealth.
For mining-adjacent communities that have historically been excluded from resource governance and benefit-sharing, the Bill could usher in long-overdue structural reforms.
The amendment clarifies that any prospecting or mining right—or interest in an unlisted company holding such rights — may not be ceded, transferred, encumbered, let, sublet or assigned without the prior written consent of the minister. This reframing excludes references to listed entities and close corporations and is understood to tighten the regulatory oversight of transactions involving mineral rights.
The introduction of a licensing regime for ASM was first raised in the unimplemented 2020 draft amendment to the Mineral and Petroleum Resources Development Act (MPRDA).
In a statement, minister Gwede Mantashe said the new licensing framework would “ensure regulatory certainty and investor confidence while promoting local industrialisation”. He further indicated the measures would enhance employment, skills development and rural enterprise formation in line with the principal act — the Mineral and Petroleum Resources Development Act, 2002, which mandates equitable access, sustainable development and socio-economic upliftment of communities affected by mining.
Critically, the bill arrives at a time of heightened geopolitical pressure marked by the recent imposition of 30% tariffs by the US on selected SA exports, including citrus, steel and automotive components. In this climate, the proposed bill assumes broader strategic importance. By formalising artisanal and small-scale mining operations, the Bill introduces a mechanism capable of absorbing labour dislocated from traditional export-oriented industries. The low-capital intensity and community-based nature of ASM enterprises could stimulate regional economies, enhance self-employment and generate new fiscal flows through the incorporation of previously informal activity.
The integration of ASM into the formal legislative framework represents a pivot toward endogenous growth that insulates the mining sector from external shocks. This new proposed licensing scheme enables communities to participate directly in the value chain, fostering localised economic strength amid mounting global trade uncertainties. The link between ASM and domestic industrialisation aligns with SA’s commitments under the African Continental Free Trade Area (AfCFTA), where local beneficiation and intra-African trade are foregrounded as pathways to economic stability and reduced dependency on Global North markets.
However, without robust enforcement and inter-departmental co-ordination, the aspirations within the bill risk falling short of their transformative potential. Implementation will then hinge on the promulgation of supporting regulations, which are yet to be published.
Once the public comment period closes on August 13, the department will consolidate submissions and prepare a revised draft for cabinet approval. The bill will then be tabled in parliament, where it will undergo committee scrutiny and possible further amendments. If adopted and signed by the president, the bill could be enacted and operational within the next year.
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