1. Parliament’s Portfolio Committee (PPC) on Mineral Resources
Briefing to
Parliament’s Portfolio Committee (PPC)
on Mineral Resources
Director-General
Adv. Thabo Mokoena
15 November 2017

2. Presentation Outline Background
Application process and transparency thereof
Integration of Management Information System
Applications and status thereof
Conclusion

3. Background OUR MANDATE
S3 of MPRDA deals with the custodianship of the nation’s minerals and petroleum resources
The state exercises its custodianship through the Minister of Mineral Resources by giving the Minister the powers to ensure the development and management of the South Africa’s mineral and petroleum resources S3(2) of MPRDA

4. Background cont… OUR MANDATE cont…
Chapter 4 of the MPRDA deals with among others
- processes and criteria of dealing with applications for the rights
- management thereof
- obligations of the holders

5. Application process and transparency thereof
Section 6 of the Act deals the principles of administration (e.g. reasonable time, transparency, etc. hence SAMRAD)
SAMRAD is the South African Mineral Resources Administration System that the department is using in administering the application process for the mineral rights
The system is programmed with business rules as per MPRDA to ensure transparency
Status of the application is available on the system and progress is updated progressively as decisions are made

6. Integration of Management Information Systems
As indicated previously, there is a need for system enhancement
However, the department stopped the enhancement but rather took a decision for system improvement which will be inclusive of integration with other systems like Mine Health Safety

7. Integration of Management Information Systems cont…
The Department is currently in the process of investing into an Integrated System to be developed over a five year period in phases as follows:
Phase 1 – Process mapping and Enterprise Architecture = To be advertised by end of November 2017
Phase 2 – Infrastructure enhancement (servers and bandwidth)
Phase 3 – System procurement and implementation
The Department is confident that this process will simplify the process and make it more efficient

8. Applications and Status

9. Applications and Status: Eastern Cape
Description PR MR MP
Applications Received
117 39
428
Applications Accepted (i.e. Application that were or become complaint with the law) 82 30
299
Applications Rejected 10 3 40
Rights Permits Granted/Issued 18 9
218
Applications Refused 5 6 60

10. Applications and Status: Free State
Description PR MR MP
Applications Received
486 41
236
Applications Accepted (i.e. Application that were or become complaint with the law
383 33
198
Applications Rejected 99 8 34
Rights Permits Granted/Issued 54 9 72
Applications Refused 94 2 47

11. Applications and Status: Gauteng
Description PR MR MP
Applications Received
489 61
277
Application Accepted (i.e. Application that were or become complaint with the law
256 49
171
Applications Rejected
220
103
Rights Permits Granted/Issued
144 36 84
Applications Refused 45 32

12. Applications and Status: Limpopo
Description PR MR MP
Applications Received
3056
151
997
Application Accepted (i.e. Application that were or become complaint with the law
878
126
586
Applications Rejected
1509 12
259
Rights Permits Granted/Issues
153 38
116
Applications Refused
384 9
411

13. Applications and Status: Northern Cape
Description PR MR MP
Applications Received
2082
131
641
Application Accepted (i.e. Application that were or become complaint with the law
1087 77
422
Applications Rejected
808 37
144
Rights Permits Granted/ Issued
228 22
148
Applications Refused
335 4 76

14. Applications and Status: North West
Description PR MR MP
Applications Received
2099
118
529
Applications Accepted (i.e. Application that were or become complaint with the law
1058 89
265
Applications Rejected
937 20
196
Rights Permits Granted/Issued
366 19 85
Applications Refused
204 18 80

15. Applications and Status: Mpumalanga
Description PR MR MP
Applications Received
4941
187
1628
Applications Accepted (i.e. Application that were or become complaint with the law
4062
150
562
Applications Rejected 21
420
Rights Permits Granted/Issued
417 40
218
Applications Refused
947 25 66

16. Applications and Status: Western Cape
Description PR MR MP
Applications Received
224 67
140
Applications Accepted (i.e. Application that were or become complaint with the law
183 66
133
Applications Rejected 38 1 7
Rights Permits Granted/ Issued 30 19 31
Applications Refused 56 3 20

17. Applications and Status: KwaZulu-Natal
Description PR MR MP
Applications Received
714 80
551
Applications Accepted (i.e. Application that were or become complaint with the law
247 22
253
Applications Rejected
254 13 99
Rights Permits Granted/Issued 85 17 94
Applications Refused
162 5
164

18. Applications and Status: SUMMARY
PROSPECTING RIGHTS
MINING RIGHTS
MINING PERMITS
Received
Accepted
Rejected
Granted /Issued
Refused EC
117 82 10 18 5 39 30 3 9 6
428
299 40
281 60 FS
486
383 99 54 94 41 33 8 2
236
198 34 72 47 GP
489
256
220
144 45 61 49 36
277
171
103 84 32 LM
3056
878
1509
153
384
151
126 12 38
997
586
259
116
411 NC
2082
1087
808
228
335
131 77 37 22 4
641
422
148 76 NW
2099
1058
937
366
204
118 89 20 19
529
265
196 85 80 MP
4941
4062 21
417
947
187
150 25
1628
562
420
218 66 WC
224
183 56 67 1
140
133 7 31
KZN
714
247
254
162 13 17
551
253
164
Total
14208
8236
3896
1495
2232
875
642
115
209
5427
2889
1302
1129
956

19. Foreign company interest
South Africa’s mineral sector is part of the global economic community
International investors having interest in the SA mining sector are as follows:
North America: USA and Canada
Europe: France, Italy, Spain, United Kingdom, Belgium
Asia: China, Russia, India, Japan, Turkey
Australia: Australia
There are 350 rights issued to companies with foreign content

20. Foreign company mineral interests
Energy minerals (include coal and uranium)
Metals (as steel and precious metals)
Industrial minerals (non–metallic minerals used in a range of industrial applications including clays, limestone, silica sand, phosphate rock)
Construction minerals (include sand and gravel, brick clay and crushed rock aggregates for manufacturing of concrete, bricks and pipes and in building houses and roads)

21. Foreign company list Province Foreign Country
Number of Right granted/issued
Types of Rights Granted
Names of Companies
Mineral Commodities EC
France 5
Mining Rights
[France] Lafarge
Granite and Aggregate FS
Australia 9
Prospecting Rights and Mining Rights
[Australia] White Rivers Exploration
 Granite and Aggregate,
Coal GP
Canada  9
 Prospecting Rights and Mining Rights
[Canada] Sibanye Stillwater
[China] Gold One
[USA] Gold Fields Int
[UK] Petra Diamonds
 Gold and Diamonds
China UK
USA LM 12
[Australia] Samancor, Aquilla Steel, Nkwe Platinum,
[Canada] Spitskop, Platreefs Resources, Phakathaba Platinum
[China] PGM Platinum, Dolokong Chrome, MinMetals
[UK] Glencor Operations, Impala Platinum, Anglo Operations
Chrome, Iron Ore, PGM, Nickel Copper NC 10
[Australia] Hotazel Manganese Mines, Tshipi e Ntle Manganese Mines, Aquilla Steel SA
[China] Nicholls Corporate Services, PMG Mining Pty Ltd, Essential Prospects 101 Pty Ltd, Siziza Ukhanyo Trading 830 CC
[India] Vendata, Sedibeng Iron Ore
[Russia] United Manganese of Kalahari
Manganese, Iron Ore, Granite, Zinc, Heavy Mineral Sands
India
Russia NW
113
[Australia] Kruidfontein Minerals, Whiterivers Exploration, Batlhaku Minerals, Samancor Chrome
[Belgium] Lanxcess, Protea Valley, Extra Dimension
[China] Rhythm of the Nation, Tau Lekoa, Vizirama, Newbeam SA, Newlight SA, Manganese Minerals, Distant Star
[India] Manganex
[Italy] Kelgran, Marlin Granite
[UK] Glencor Operations, Impala Platinum, Anglo Operations, Southern Palace, Lonmin, Pilanesburg Platinum Mines
Chrome, PGM, Granite, gold, Limestone, Nickel, Copper
Belgium
Italy MP
 125
[Australia] South 32, Vantage Gold, Aquarius, Keaton Energy
[India] Jindal
[Russia] Nkomati Nickel
[Switzerland] Glencor Operations
[Spain] Kangra Coal
 Coal, Nickel, Aggregate and Stone
Spain
Switzerland WC 22
[Australia] Mineral Sand Resources,
[France] Lafarge, Imerys Resources
[USA] Tronox, Peninsula Energy
Heavy Mineral Sands, Aggregates, Betonite &
Uranium
KZN 45
[Australia] Rio Tinto, White Rivers Exploration
[Canada] Buffalo Coal
[India] InsaCoal, Kasimira, Jindal Steel, Osho Ventures
[Italy] Marlin Granite
[Spain] NPC Cimpor, Kangra Coal
[Turkey] Menaar Holdings
[USA] Tronox
Heavy Mineral Sands, Limestone, Coal, Iron Ore, Granite and Aggregate
Turkey
Foreign company list

22. South African company mineral interests
Province
Types of Rights Granted to South African Companies
Number of Right granted/issued EC
Prospecting Right 18
Mining Right 4
Mining Permit
281
Total
303 FS 63 13 72
148 GP 70 39 94
203 LM 51 3
166
220 NC
226 14
388 NW
356 19 85
460 MP
328 6
218
552 WC 26 17 30 73
KZN 66
186
400
South African company mineral interests

23. Proportion of rights issued to SA v Foreign
Provinces
South African
Foreign EC
303 5 FS
148 9 GP
203 LM
220 12 NC
388 10 NW
460
113 MP
552
125 WC 73 22
KZN
400 45
Totals
2747
350

24. Administrative challenges
Lack of funding to provide for required human resource capacity to implement the Departmental mandate
High volumes of applications received and less human capacity to process within stipulated time frames resulting in delays in processing and finalising applications
Lack of financial capacity to provide for systems and technology for monitoring and evaluation of compliance with the Act
No integration in the management of mining data (mineral regulation, mine health and safety, mineral policy and promotion

25. Administrative challenges cont…
High costs associated with lodgement of applications (i.e EIA costs and provision for rehabilitation guarantees)
Technical nature of the content of application requirements
HDSA applicants are unable to fully comply with authorisation requirements within stipulated times
Landowner’s denial of applicants to prospect / mine on their properties

26. Measures to address
Assistance of HDSA applicants to comply with requirements even if the process runs over the stipulated time
Engaging Council for GeoScience and MinTEK to provide technical assistance
Need for intervention for a financing mechanism to assist HDSA applicants
Where landowners deny access to properties – utilise the provision of section 54 of MPRDA to mediate over disputes

27. Conclusion
There is really a need for the department to be more financially resourced to deal with its majority of the challenges
Processing of applications in a seamless and cost effective manner including improving on turnaround time
Integrated systems to improve data availability and reliability