Modern Mining May 2024

investment, reignite mineral development, accel erate new mineral discoveries, clean technology, processing and mining supply and services sectors. Mitchell says the junior mining sector, which plays an integral role in the mining industry, has been growing. In 2018 it generated R 55 billion in annual revenue, and this rose to R88 billion in 2021. It must be noted however that this revenue is primarily from small to mid-tier producers, and does not include explorer/developers who do not generate revenue. However, the money prospecting and mine-develop ment companies spend does reflect in the broader economy and as a source of jobs. Green field explor ers, even if they are not successful in finding a viable deposit, still make an immediate contribution to the economy. Highlighting what the junior mining sector requires to succeed, Mitchell explains that there is an urgent need to ensure an investment-friendly regula tory environment. “The Minerals Council South Africa is currently engaged in research to determine which aspects of the regulatory environment need to be revamped to entice more junior mining and exploration compa nies to enter the sector. As it is, administrative delays are often a hinderance to attracting investment and there is currently a trend of mining and prospecting right applicants competing for minerals in the same deposit. We are finding that a secondary prospecting or mining licence holder is challenging the primary applicant for the same deposit. What sometimes occurs is that a second company applies to mine the already allocated deposit for a secondary mineral. As such, government needs to provide clarity on the matter so we eliminate ambiguity and confusion.” Mitchell points to International Best Practice for mining and prospecting rights - the First Qualifying Applicant process, which ensures that a single applicant has access to the deposit at a given

Above: South Africa’s junior mining sector is set to get a shot in the arm from the Junior Mining Exploration Fund. Left: South Africa should look to adopt the First Qualifying Applicant process for direction on minerals exploration.

time. “South Africa should look to adopt the First Qualifying Applicant process for direction on miner als exploration.” Moreover, the various government departments required to process a mining or prospecting right need to align seamlessly to ensure that mining appli cations are approved timeously. “When an applicant applies for a prospecting or mining right the DMRE and Department of Water and Sanitation and the Department of Forestry, Fisheries and the Environment interact to grant the mining right. Offering an efficient one-stop shop for mineral rights processing without the usual delays will go a long way in growing the exploration arm of mining.” Importantly, as prospecting is highly risky and often takes years, extended licencing timeframes

Objectives of the JMEF The Fund was established to meet the following objectives:  to assist qualifying enterprises in the mining industry to conduct prospect ing work;  to increase Black Junior Miners’ access and licence to mine ore bodies;  to promote economic inclusion to support equitable economic growth.

May 2024  MODERN MINING  11