Miners wait for thei transport to start their 12 hours shift i
The Minerals Council South Africa has expressed concern over proposals contained in the country’s Industrial Development Strategy 2026 and says it will engage the government on the implications for the mining sector.
In a statement issued on June 9, the Council said it noted with regret proposals by the Department of Trade, Industry and Competition to introduce taxes and quotas on chrome ore exports and to link beneficiation requirements to the granting of mining rights.
The Council, whose members account for about 90 percent of South Africa’s annual mineral production by value, said it would study the strategy in detail before formally engaging the government.
Chief Executive Officer of the Minerals Council, Mzila Mthenjane, described the proposals as an unfortunate policy direction that could increase uncertainty in the mining industry and discourage investment and growth.
According to him, plans to attach beneficiation conditions to mining rights could negatively affect future exploration and mining investments.
The Council argued that mining and beneficiation are separate sectors within the mineral value chain and that beneficiation should not be imposed as a condition for mining operations. Instead, it said government should introduce incentives to attract investment into manufacturing and industrialisation.
The Minerals Council also rejected suggestions that chrome ore exports are responsible for the challenges facing South Africa’s ferrochrome industry. It maintained that rising electricity costs are the primary factor behind the decline in local smelting operations.
The organisation noted that electricity tariffs have increased by more than 900 percent since 2008, making the ferroalloys industry globally uncompetitive and forcing several smelters to shut down.
It welcomed recent electricity tariff reductions granted to Glencore Ferroalloys and Samancor to restart smelting operations, describing the move as evidence that competitive electricity prices, rather than export restrictions, are key to supporting beneficiation and industrial growth.
The Minerals Council said it remains engaged with the Department of Mineral and Petroleum Resources on proposed mining legislation aimed at making South Africa a more attractive destination for exploration and mining investment.
