Business Day

Service provider finally appointed to design new mining licensing system

- Denene Erasmus Energy Correspond­ent erasmusd@businessli­ve.co.za

The department of mineral resources & energy (DMRE) has announced the eagerly anticipate­d appointmen­t of a service provider to design, implement and maintain a new mining licensing system.

The department said on Wednesday that it has selected PMG Consortium to develop the online system.

The mining sector has been lobbying the government for years to replace the “dysfunctio­nal and outdated” SA Mineral Resources Administra­tion System (Samrad), which is operated by the department, with a new, transparen­t and reliable cadastre.

A mining cadastre is an official record of valid mining rights, their expiry date, location and the minerals in question. The inefficien­cies of Samrad have resulted in a backlog of thousands of unprocesse­d mining and prospectin­g licences.

In July 2023 the department finally agreed to do as the industry had been suggesting for several years: to select a technology provider and purchase an offthe-shelf cadastral system.

Included in the PMG Consortium is Canada-based Pacific GeoTech Systems, which has provided digital land resource management and permitting systems for Canadian provincial government­s for more than two decades.

Another member is MITS Institute, an SA informatio­n and communicat­ions technology company, and Gemini GIS, which is a wholly womenowned empowermen­t geological services company led by MD Andiswa Silinga.

Silinga worked for De Beers and Ivanhoe Nickel & Platinum before starting Gemini in 2008.

Paul Miller, director of business developmen­t consultanc­y AmaranthCX welcomed the news but said it will probably take a year or more before the public will start to see any results.

It will still be up to the DMRE to have all the requisite hardware, such as computers, servers and a working network, in place on which the software will run.

In addition, all data on the Samrad system will have to be migrated to the new system, he said.

“The previous migration to Samrad was a disaster; this must be avoided this time,” Miller said.

The DMRE will also have to find a way to resolve disputes, such as competing mining rights, which may arise in the process. “I expect it will be at least a year before the public will have view of the data,” Miller said.

Minerals Council SA also welcomed the announceme­nt, adding it said it was looking forward to engaging with the DMRE about the new cadastral system, how it will be implemente­d, the timeline needed to populate the new system using data from paper records and those still on the Samrad database to efficientl­y process mineral right applicatio­ns.

“The new cadastre will expedite the processing of prospectin­g and mineral rights applicatio­ns, shortening the adjudicati­on of applicatio­ns. We can anticipate a near-term positive turnaround in the prospects of the industry through increased investment and future growth of mining and stimulus to the economy,” said CEO Mzila Mthenjane.

The DMRE has been struggling for years to clear a backlog of applicatio­ns for mining rights, prospectin­g rights, and mining permit applicatio­ns and renewals.

The Minerals Council has estimated the backlog at more than 3,000 prospectin­g and mining rights with a potential investment value of more than R30bn.

 ?? /Supplied ?? Eager to engage: Mzila Mthenjane, CEO of Minerals Council SA. The council has welcomed the news of PMG’s appointmen­t.
/Supplied Eager to engage: Mzila Mthenjane, CEO of Minerals Council SA. The council has welcomed the news of PMG’s appointmen­t.

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