South Africa
Legislation
- Mineral Resources and Petroleum Development Act 2002 (as amended)
- MPRDA Regulations 2004 (as amended)
- National Environmental Management Act 1998 (as amended)
- NEMA EIA Regulations 2014 (as amended)
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
| Regulatory Risk Rating Factors | Risk Level |
|---|---|
| First Come / First Serve | Subscribe |
| Application Criteria | Subscribe |
| Duration | Subscribe |
| Right to Renew | Subscribe |
| Competing Licences | Subscribe |
| Mineral Coverage | Subscribe |
| Right to Mine | Subscribe |
| Criteria for Mining Rights | Subscribe |
| Tenure | Subscribe |
| Surface Rights | Subscribe |
| Government Take | Subscribe |
| Transfer Rights | Subscribe |
| Change of Control | Subscribe |
| EIA Process | Subscribe |
| Power to Revoke | Subscribe |
| Age of Legislation | Subscribe |
| Other Factors | Subscribe |
South Africa’s risk profile has been in decline for more than a decade. The country has done considerable damage to its mining sector’s reputation both with the attempted implementation of the more problematic aspects of the Mining Charter, which were ultimately set aside by High Court judgement in 2021, and by its constant efforts to amend the primary legislation, resulting in considerably uncertainty across the industry. When paired with other challenges, such as energy insecurity, community issues and labour challenges, it is little wonder that exploration spend in the country is at its lowest level in decades and there are few projects coming through the pipeline for development.
Contents
Legislation
- Mineral Resources and Petroleum Development Act 2002 (as amended)
- MPRDA Regulations 2004 (as amended)
- National Environmental Management Act 1998 (as amended)
- NEMA EIA Regulations 2014 (as amended)
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
Overview
South Africa has one of the largest economies by GDP in Africa, though it is a dual economy, with some of the highest levels of inequality in the world. Mining has, of course, been a key industry in South Africa for centuries since the discovery of diamond (1867) and gold (1887) deposits. Alongside gold and diamonds other key mineral resources include chrome, ilmenite, manganese, palladium, platinum, rutile, vanadium, vermiculite and zircon. Though the mining sector’s contribution to GDP has shrunk to single figures in recent years, it still contributes around 6% of GDP and employs in excess of 400,000 people. Over the last 20 years, the sector has faced numerous challenges, not least because of rising resource nationalism and regulatory instability. Other issues have included skill shortages – in both the administration and the industry, the use of guidelines and charters to articulate mining policy rather than legislation – resulting in high levels of uncertainty, disaffected labour relations, issues with social licence to operate and critical uncertainty and unreliability of power supply. These aspects have undoubtedly contributed to significant falls in exploration spend and caused some companies to divest operations to more favourable jurisdictions.
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