Modern Mining October 2025

LEGAL

Is the South African mining industry being throttled by over-regulation and new legislation? The South African mining industry has always, to varying degrees, been regulated by a framework of laws addressing key elements of the mining lifecycle such as prospecting, mining, environmental, water, emissions, land use, and post – closure commitments. However, this legal framework is becoming more complex, and navigating the ever–changing legal framework and, most importantly, complying with the requirements of the legal framework, has become extremely challenging.

W hile many countries with mineral resources in Africa have updated legislation, but retained a less complex legal framework, South Africa is on an accelerated path to becoming one of the most complex mining jurisdictions, impacting on investment, compliance, growth, development, and transformation. In addition to the regular and routine amendments to environmental laws, such as waste and dust, there are numerous proposed or imminent changes to the mining, health, safety and environmental legislation that have far – reaching consequences. These changes include significant changes to the Mine Health and Safety Act (MHSA) which are anticipated to be introduced in Parliament soon, proposed amendment to the Mineral and Petroleum Resources Development Act (MPRDA) and, under the Carbon Tax Act (Carbon Tax Act) there is the proposed Draft Technical Guidelines for the National Greenhouse Gas Carbon Budget and Mitigation Plan Regulations (Draft Technical Guideline) and the Draft Technical Guidelines for the National Greenhouse Gas Carbon Budget and Mitigation Plan Regulations (Draft Regulations), both

of which are currently open for public comment until 30 September 2025. Collectively, the changes will introduce stringent compliance requirements, enhanced enforcement powers and increased penalties for non – compliance. There is also the impact of carbon tax based on the implementation of the first commitment period starting in January 2026 under the Carbon Tax Act and the Draft Regulations (which will have to be promulgated before the end of 2025). The amendments to the MHSA will include material changes regarding training to be provided to employees, significantly enhanced powers and functions of the Mine Health and Safety Inspectorate to enforce the provisions of the MHSA, and to issue “blanket instructions” which may address health and safety “beyond the mine fence”, and increased penalties that could include fines of up to 10% of a mining company’s turnover in the preceding year or the value of exports, whichever is higher. The proposed changes to the MPRDA include increased penalties (also based on percentage of turnover), increased criminal sanctions, regularisation of artisanal and small-scale mining, beneficiation responsibilities and requirements, and

Warren Beech, CEO of Beech Veltman.

22  MODERN MINING  www.modernminingmagazine.co.za | OCTOBER 2025