Latest news with #DMPR
Daily Maverick
7 days ago
- Business
- Daily Maverick
Loaded for Bear: Mantashe's mining cadastre is rolling out at a geological pace
Everything at the DMPR seems to take 'longer than anticipated', which speaks volumes to its many governance failures, and points to entrenched interests wary of the light of transparency being directed to the applications and permitting process. It has been music to the ears of South Africa's (SA's) mining sector, but in hindsight, only the tone-deaf would have fallen for the melody. For months, Minerals and Petroleum Minister Gwede Mantashe promised that the long-awaited mining cadastre – desperately needed to address an applications backlog and bring transparency to the permitting process – would be up and running by June. 'The completion of the migration process to the new efficient and transparent mining licensing system, in June next year, is poised to modernise our licensing system, ensure regulatory certainty, and the sustainability of the South African mining industry,' Mantashe told the Joburg Mining Indaba in October last year. The lack of a proper cadastre – an online portal that displays a country's mineral wealth while allowing companies to seamlessly apply for mining and prospecting rights – has long been a deterrent to mining investment, leading to massive applications backlogs and suspicions of corruption at regional offices of the Department of Mineral and Petroleum Resources (DMPR). This shambles is especially harmful to prospecting – a high-risk activity – and is a key reason why SA's share of global exploration spend has fallen to under 1% from 5% two decades ago. Mantashe and other officials in the department for months this year stuck to the June timeline, a prospect that admittedly needed to be seen to be believed, after years of bungling and needless delays on this front. And in late May, lo and behold, there was an adjustment to this timeline – the first flashing red light signalling that the rollout was hitting some potholes. Tseliso Maqubela, a deputy director-general in the DMPR, told the Junior Mining Indaba that the department was 'on track to deliver a transparent cadastral system' but it would not go live everywhere initially, with the Western Cape chosen as the province to test drive the new system. And last week – surprise, surprise! – Mantashe told Parliament that the Western Cape launch had been delayed by another three months, reported in Mining Weekly. '… this is a delicate process that requires precision and quality assurance, and it is taking longer than we had anticipated. Consequently, this has resulted in a need to reschedule the phased rollout of the system in the Western Cape by a further three months,' Mantashe said. Everything at the DMPR – formerly the DMRE – seems to take 'longer than anticipated', which speaks volumes to its many governance failures and points to entrenched interests wary of the light of transparency being directed to the applications and permitting process. The Mpumalanga regional office is a standout in this regard. It accounts for the bulk of the applications backlog, a suspicious state of affairs linked to a dubious scramble for mining permits for coal. Mining permits only cover up to five hectares of land and have far fewer regulatory and environmental requirements than mining rights. Then there was the pledge to publish quarterly updates on the applications bottleneck, and the progress made in whittling it down. An update was published in November last year. But there has been nothing since – unless it is buried somewhere on the department's website, which would also go against the grain of transparency. Mantashe did tell Parliament last week that 2,596 applications were approved in the previous financial year. The cadastre provider – PMG consortium – was selected in January last year and is spear-headed by Canadian-based Geotech, which is widely seen as first-class in the field. But the bottom line is that the Western Cape launch has now been moved out to the end of September, leaving the industry wondering when the system will be up and running nationwide. And given the department's track record, it will come as no surprise if that timeline is missed as well. The cadastre rollout is going at a geological pace, and meanwhile the mining sector still has to contend with the utterly useless Samrad system for processing mining and exploration applications. New coal deposits might form before the new cadastre goes live. DM
Daily Maverick
04-06-2025
- Business
- Daily Maverick
Mixed news at the pump: fuel levy rises while prices drop
The Western Cape High Court has dismissed the EFF's urgent bid to block a controversial fuel levy hike—just as fuel prices dip. From midnight, levies rise by 16c (petrol) and 15c (diesel), despite constitutional questions. It's a pump paradox: taxpayers pay more, but pump prices briefly fall. In a ruling handed down yesterday, Judge Nathan Erasmus found that the EFF's application lacked urgency and did not meet the legal threshold for interim relief. The court did not engage with the broader constitutional challenge itself, which the EFF had previously framed in its initial filing as a possible Part B of its legal strategy. A tax fight rooted in Budget 3.0 The levy increase was announced in Finance Minister Enoch Godongwana's revised Budget 3.0, tabled in May following the political fallout and eventual withdrawal of VAT hikes in earlier budget versions. Treasury estimates the fuel levy will raise about R4-billion in the 2025/26 fiscal year. The EFF has argued that the use of Section 48(1) of the Customs and Excise Act to implement the fuel levy increase amounts to an unconstitutional bypassing of Parliament. Section 77 of the Constitution requires that all new taxes be passed via a money Bill through the National Assembly. Arguments on constitutional compliance Representing the EFF, Advocate Mfesane Ka-Siboto told the court: 'The fact that this has happened before does not make it lawful. Past practice is not a substitute for constitutional compliance.' He described the move as a case of 'taxation without representation.' The Treasury, represented by Advocate Kameel Premhid, countered that Section 48(1) had long been used lawfully to adjust fuel levy schedules. He argued the measure was an administrative amendment within an existing framework, not the introduction of a new tax requiring legislative approval. What this means for you For consumers, the fuel levy increase translates into higher petrol and diesel prices at the pump, effective immediately. This could lead to broader knock-on effects on transport costs, food prices and inflation, particularly for lower-income households who spend a greater share of their income on fuel-linked expenses. Treasury maintains the hike is necessary to address fiscal gaps left by the abandoned VAT proposal. The fuel levy increase will be offset by a decrease in fuel prices – which also kicks in on Wednesday, 4 June. The Department of Minerals and Petroleum Resources (DMPR) announced the following price decreases yesterday: Petrol 93 (ULP & LRP): ⬇️5cents/litre. Petrol 95 (ULP & LRP): ⬇️5 cents/litre. Diesel (0.05% sulphur): ⬇️ 36.9 cents/litre. Diesel (0.005% sulphur): ⬇️36.9 cents/litre. Commenting on the changes, the DMPR noted that over the last month, there has been a decrease in the average Brent Crude oil price from US$66.40 to US$63.95, largely on the back of continued global trade uncertainty, Parliament distances itself from the damage Parliament, which was cited in the court papers, but not the target of any relief, issued a brief statement after the judgment: 'Although cited in the application, no relief was sought against Parliament. Parliament's position throughout the proceedings was to abide by the outcome of the court process. Accordingly, Parliament will comply with the court's ruling.' Oversight loophole or legal mechanism? In its legal representations, Treasury has argued that Section 48(6) of the Act ensures Parliamentary oversight by requiring the amended tariff to be tabled after the fact. The EFF, however, contends this form of post-implementation tabling falls short of the constitutional threshold for public finance legislation. EFF's Part B remains unclear In a short statement on X after the ruling, the EFF said: 'We are committed to fighting the fuel levy increase in court and in Parliament.' However, the party did not explicitly confirm that it would pursue the Part B constitutional review. Whether the EFF returns to court or not, the broader legal and political debate over fiscal authority, oversight and the democratic control of taxation is likely to persist. DM
Zawya
22-05-2025
- Business
- Zawya
South Africa: Mineral Resources Development Bill and the Critical Minerals Strategy released
The Mineral Resources Development Bill and the Critical Minerals Strategy by the Department of Mineral and Petroleum Resources (DMPR) come at a pivotal time to realise the potential for South Africa's mining industry and its contribution to economic growth and the energy transition. The Department of Mineral and Petroleum Resources has released the Mineral Resources Development Bill and the Critical Minerals Strategy The launch of both documents on Wednesday, 2 May has been welcomed by the Minerals Council South Africa. The Minerals Council was engaged twice by the DMPR for a high-level overview of what would be in the Mineral Resources Development Bill, which amends the Mineral and Petroleum Resources Development Act. The Minerals Council assisted the DMPR and Mintek in the process of defining what constitutes a critical mineral, but it had no role in developing the strategy. The Minerals Council is in the process of reviewing the Bill and the Strategy. It is critical for the growth and sustainability of the mining industry that the Bill and Strategy encourage investment in exploration, the development of new mines and the long-term sustainability and expansion of mining operations, says the Minerals Council. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
