Modern Mining March 2022

JUNIOR MINERS

including the pandemic and a regulatory environ- ment that is not conducive to growing the junior mining sector. “Our members complain of long delays in the granting of mining and prospecting rights, lack of co-ordination between the various government departments, including those related to environ- mental affairs, water and sanitation, power and the Department of Mineral Resources and Energy itself. Processing an application can take up to three years. Considering that a country like Botswana is able to process an application in under six months, this puts the South African junior mining sector at a severe disadvantage as a mining investment destination,” says Mitchell. With junior and emerging miners highly depen- dent on external funding to launch their companies and projects, unacceptably long delays often exas- perate funders who sometimes pull out of deals. “Investors target opportunities with quick return on investment and seek jurisdictions with an effi- cient mineral rights administrative system in which to invest,” explains Mitchell, and in a bid to help its members and improve on the existing policy frame- work, the Minerals Council has been engaging with government. “At a policy level, the JEMD, led by the Junior and Emerging Miners Leadership Forum, spent the better part of a year lobbing government for an improved policy framework that attracts exploration invest- ment. Currently we have dropped below 1% of global exploration dollars.

drawing over a hundred delegates all with an interest in the junior mining sector. They are free of charge and form part of our public education programme.” Importantly, the JEMD conducts research with and on behalf of its members, including for instance, research into health and safety statistics of junior companies. “Conducting and unpacking research for our members helps us to better understand the sector and become more effective lobbyists,” Mitchell says. Tackling policy challenges that stymy junior miners’ growth The sector’s resilience and determination to succeed has seen it stand strong against most challenges,

Membership of the Junior and Emerging Miners Desk has grown steadily over the past few years.

Junior and emerging miners are highly dependent on external funding to launch their companies and projects.

32  MODERN MINING  March 2022