Johannesburg – The Department of Mineral Resources and Energy (DMRE) is in a race against time to clear the backlog of thousands mining and prospecting rights and unlock value in the sector.
The department indicated that 235 mining rights; 2 485 prospecting rights; 1 644 mining permits; 238 Section 11 change of ownership transfers; and 724 licence renewals are currently backlogged.
The Mpumalanga regional office alone accounts for 1 869 backlogs, followed by Limpopo with 1 054. DMRE Minister Gwede Mantashe said the department was addressing the issue. “We have also committed to reduce the licensing time frames by 50%. Our team is working towards achieving this goal,” he said.
S&P Global Market Intelligence data shows that South Africa’s share of global budgeted exploration spend dropped by 20% from around $97.4-million in 2019 to $77.4-million in 2020. Minerals Council CEO Roger Baxter said the government must ensure the entire licensing system is electronic, with proper receipts for documents uploaded and time frames within which feedback must be provided and licences issued.
“The Minerals Council has taken a very practical constructive, problem-solving approach to addressing the issue of licence delays and in the one-stop-shop task team has submitted all the relevant details of the 170 plus right applications listed above, with a practical focus on how to get these blockages resolved as expeditiously as possible,” Baxter said.
“We continue to engage with DMRE director-general Thabo Mokoena on ways to prioritise the issuing of outstanding licences,” he added. The chairperson of the DMRE committee in parliament, Sahlulele Luzipo, said that he committee expects to see those commitments included in the 2021/22 annual performance plan and budget estimates of the department. “The committee has allowed the department three months to implement the backlog turnaround plan and report on the progress made thereafter,” Luzipo said.
“The plan entails, among other things, focusing on one province at a time in order to cut the normal licence processing period by half,” he said.
“The department should not only focus on processing applications faster, but it should also ensure that the online application process is easy in order to increase investment opportunities in the mining sector.”
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