Business Day

Mining rights: new bid for workable system

- Linda Ensor Parliament­ary Writer ensorl@businessli­ve.co.za

The department of mineral resources & energy has started a fresh procuremen­t process to replace the antiquated SA Mineral Resources Administra­tion System (Samrad), but the mining industry says that could take years when a proven, easily implementa­ble, off-the-shelf system used widely in the rest of Africa is available.

Hilda Mhlongo, the department’s deputy director-general for corporate services, said the new procuremen­t process had been initiated after the initial procuremen­t by the State Informatio­n Technology Agency was cancelled following an audit.

The terms of reference and bid specificat­ions were still being compiled and would be completed at the end of November. The bid will be advertised by December 15, Mhlongo said.

Samrad, which was introduced in 2011, uses outdated technology and cannot be enhanced any further, rendering it unable to deal with mining and prospectin­g right applicatio­ns, parliament’s mineral resources & energy committee heard on Tuesday.

REJECTED

Unlike other systems around the world, Samrad does not provide an applicant with a map containing the co-ordinates and mineral deposits of the desired mining area. Moreover, it neither indicates whether there are existing rights holders over the area nor does it offer an online applicatio­n process.

The procuremen­t and developmen­t of a new bespoke system could take months, if not years, and the Minerals Council SA has urged the department for years to acquire an easily implementa­ble system used widely in the rest of Africa. The industry offered to acquire one for the government but was rejected.

Minerals Council SA spokespers­on Allan Seccombe said the effect of the dysfunctio­nal system is clear: investment in mining exploratio­n in SA has fallen from about 5% of global expenditur­e to less than 1%.

“This is a direct function of being unable to manage prospectin­g rights efficientl­y and that comes back to the cadastral system,” he said.

BACKLOG

It has also contribute­d to a huge backlog in processing applicatio­ns for prospectin­g and mining rights, and the renewal of mining rights.

Mhlongo said progress has been made, with the backlog reduced from 4,647 applicatio­ns in March 2021 to 2,625.

A further problem with Samrad is data not being loaded onto the system by department­al officials, which has led to the double-granting of rights, said deputy director-general Tseliso Maqubela.

About 70% of mining applicatio­ns dealt with over the past 18 months have been refused because of insufficie­nt financial data or because a right had already been issued for the identified land, Maqubela said.

The department is now ensuring that the data is uploaded, and about 70% of the work has been done and should be completed by the end of the financial year, he added.

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