Business Day

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.”

 ?? ?? Nivaash Singh … imperative.
Nivaash Singh … imperative.

Newspapers in English

Newspapers from South Africa