Valterra Platinum chair Norman Mbazima has taken aim at the government over what he described as a “narrow window” for stakeholder consultation during last year’s overhaul of mining legislation.
In his annual letter to shareholders, Mbazima warned that the Mineral Resources Development (MRD) bill of 2025 does little to deliver the regulatory certainty required to support investment and expansion in the local mining industry.
The bill, which was first published last May, represents the sector’s biggest regulatory overhaul in nearly a quarter of a century.
It proposes changes to the Mineral & Petroleum Resource Development Act (MPRDA) of 2002, South Africa’s flagship mining regulation.
“The MPRDA is a key piece of legislation in our industry, but its provisions have not kept pace with local and global developments over the years,” wrote Mbazima.
He said Valterra had provided its own input in the Minerals Council South Africa’s lengthy written response to the MRD bill during the public comment period and the group’s view is broadly in line with that of the council’s critical stance.
“We believe that, in its current form, the bill does not encourage or sustain the growth and investment the mining industry needs to realise its full potential to create employment, stimulate the economy and fulfil its social mandate,” said the chair.
At the Mining Indaba last month, the council told journalists it expects a revised version of the bill to be published before July.
But Mbazima warned that the consultation process is far from over, with the council expecting “extensive bilateral engagements with the department to revise the bill”. He also criticised the way in which the department consulted with the industry over its proposals.
“Though long-awaited draft amendments to the Mineral and Petroleum Resources Development Act were gazetted by the department of mineral & petroleum resources in May 2025, subsequent corrections in June and a narrow window for public comment until early August limited stakeholder engagement,” he said.
Some of the draft bill’s controversial suggestions included giving the mining minister power to designate certain areas of land for artisanal mining and incorporating BEE requirements in the process to apply for prospecting rights, a clause that was quickly removed after eliciting significant industry backlash.
More broadly, though, the council’s grievances are about the bill’s failure to resolve regulatory uncertainty.
In February, council president Paul Dunne called uncertainty about the bill’s rollout a “weight on the shoulders” of local miners, which he said was forcing companies to delay investment and miss out on soaring precious metal prices.
Meanwhile, rising electricity costs continue to elicit widespread concern from the industry.
According to council data, electricity tariff increases have consistently exceeded the Reserve Bank’s inflation target for more than two decades, putting energy-intensive mining at a disadvantage against global peers.
The council has warned that the National Energy Regulator of South Africa’s approved electricity tariff hikes imply a cumulative increase of about 25% over the next three financial years.
“The absence of meaningful structural reform continues to weigh on the local mining industry, with persistent cost pressures eroding South Africa’s competitive edge,” said Mbazima.
“Mining input costs such as labour compensation and administrative prices (particularly electricity) have consistently outpaced consumer inflation, undermining the sector’s competitiveness.
“Compared to average inflation just above 3%, January data from the council shows power costs surged nearly 16% year on year while water cost increases were almost 12%.”
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