Members demanding more support
The junior and emerging miners’ desk at the Mineral Council South Africa (MCSA) is no longer content with playing a background role in the multibillion- rand industry, demanding
more support for its members and extra clout in policymaking.
Grant Mitchell, who heads up the junior and emerging miners desk at the MCSA, said as opposed to exploration companies, junior miners were looking to invest in the long term and that regulations should be relaxed to accommodate them.
“The majority of our juniors, even if they are at an exploration phase, ultimately want to run a fully edged mine. The regulatory environment is the biggest challenge facing junior miners. The uncertain policy environment is also a big risk,” Mitchell said.
Junior producers operating in South Africa are in sectors such as industrial minerals, diamonds, platinum, coal, manganese, iron ore, chrome and other base metals. Mitchell said junior miners want to stimulate investment in the sector through tax incentives, JSE venture capital and junior miners funds.
“As a result, the desk has had meetings with the Industrial Development Corporation as well as the Public Investment Corporation, who are looking to set up a fund. This process is
ongoing.”
Fundraising on the JSE for mining projects within South Africa is difficult despite attempts by the JSE to provide a fast-tracked, cheaper listing process for junior miners.
Only 10 junior miners are currently listed on the JSE.
The Department of Mineral Resources launched a “junior miners’ programme” in 2018 to provide opportunities for new entrants identified throughout the mining value chain, as well as to assist with issues of access to funding, compliance and access to markets.
Errol Smart, CEO of Orion Minerals, said junior miners should be given the space to be generators of mining projects of the future.
“Our problem in SA is that we [junior miners] don’t have the value chain. What is happening at the moment is that we have old, tired mines that are falling off and are being replaced by junior miners who come in and try to salvage what is left,” Smart said.
A recent survey by the junior and emerging miners’ desk indicates that junior and emerging miners had revenues of R54.4-billion in 2018 and spent R55.5-billion.
By Kabelo Khumalo
SA junior miners want piece of pie
