Unless exploration increases fast, the vital mining economy will shrink.
The first call applications for the R400-million junior mining exploration fund (JMEF) close on July 12.
This was stated in a media release issued by the Department of Mineral Resources and Energy (DMRE), in partnership with the Council for Geoscience (CGS) and the Industrial Development Corporation (IDC).
Officially established earlier this year, the JMEF aims to enable eligible South African junior mining enterprises to access funding for prospecting work; increase access to mine orebodies; and promote economic inclusion to support equitable economic growth.
The widespread South African mining industry view is that unless exploration increases very quickly, there will be a real lack of projects to replace mines facing closure, which is arising faster than expected owing to global disruption.
A collective effort is being made by Minerals Council South Africa, the CGS and the IDC by speaking on joint platforms to promote a return to growth in the shrinking South African mining industry.
There is overwhelming determination that South Africa, which is currently attracting below 1% of global exploration investment, should return growth in a sector that has multiple economic and employment benefits.
As a country, South Africa certainly must become one of the key players in the move to transition to a low carbon future and the need to extract critical minerals that are going to be necessary to combat global climate change.
Obtaining a good understanding of the landscape of minerals across the breadth and depth of South Africa represents a major economic growth opportunity.
For juniors to be able to play a role, enabling factors must be put in place. Junior miners numbering 38 make up more than half of the membership of the Minerals Council, an employer policy promoting organisation representing 90% of South African mining by value.
Calls are being made for all the necessary regulatory and administrative elements to be aligned and for various government departments to function together to enable mining and exploration to proceed at pace.
The cadastral system must enable very efficient processing of exploration applications without forgetting that exploration is largely entrepreneurial.
“Collaboration is paramount. Industry leaders, policymakers, and the logistics solution providers need to work together to create a more inclusive environment for junior miners. This means fostering open communication, establishing clear and efficient access protocols,” says Ndalamo Resources CEO Shammy Luvhengo on empowering junior miners.
The establishment of the JMEF is seen as a positive move in view of the scope of exploration that is going to be required. Details of the required JMEF documents can be found on www.idc.co.za/junior-mining/.
Enquiries can be made to DMRE’s Makhosonke Buthelezi at 082 359 5584 and mediadesk@dmre.gov.za