Players await new cadastre system
Among the various challenges constraining the local mining sector, the ongoing delays in launching a functional and efficient online cadastre system by the department of mineral resources & energy (DMRE) continue to dampen output, growth and investment.
An open online electronic system for registering and managing prospecting and mining licences and other permits is vital to support` exploration and a thriving junior mining sector.
“SA is one of the last countries in Africa to adopt a mining cadastre, yet it is imperative for any developed mining country to attract international investment,” says Nivaash Singh, Co-Head: Mining and Resources at Nedbank CIB.
Wessel Badenhorst, Partner at Hogan Lovells Johannesburg, says the current South African Mineral Resources Administration (Samrad) system is an overly bureaucratic, labour-intensive paper-based system that lacks the real-time information technology needed to deliver an efficient user-friendly interface.
“The absence of a functioning digital cadastral system perpetuates the inefficiency of an archaic analogue licencing system.”
After publishing a request for proposals to replace the errorprone Samrad system, the process has been marred by delays after the DMRE initially told parliament that the new system would be in place by February 2023.
“The latest delay relates to a lack of appropriate hardware and IT infrastructure at the DMRE that meets the minimum standard required to implement an off-the-shelf solution,” says Singh. “The project is now on hold, I believe, while the DMRE updates its IT infrastructure.”
“It is impossible to predict whether, once in place, the new mining licensing system will deliver on the promises made, but against an ever-increasing backlog of new mining licence applications, the new system cannot come soon enough,” adds Badenhorst.
The resultant lag in developing new mining projects is a major issue highlighted by Singh. “If the DMRE does not implement a solution to issue exploration licences efficiently and expediently, then SA will not have the capacity to replace lost production from mines reaching the end of life.”
Despite the delays, Shirley Webber, Coverage Head — Resource & Energy at Absa CIB, says the local mining sector anticipates the new mining licensing system will significantly enhance efficiency and transparency, thereby driving growth and investment.
“The system is expected to streamline the application process for mining rights and permits by addressing the longstanding issues of permitting backlogs and maladministration.”