With an additional R180 million allocated to the programme to rehabilitate and close derelict and hazardous mines in the previous financial year, Mintek successfully rehabilitated four asbestos mines in Limpopo and the Northern Cape, and sealed off 280 dangerous mine openings. Through the rehabilitation programme, efforts have extended beyond surface restoration to include the closure of hazardous mine openings, such as abandoned shafts and those created by illegal mining activities.

This update was delivered by Deputy Minister of Mineral and Petroleum Resources, Phumzile Mgcina, during the department’s Budget Vote. Her address outlined the departments progress in alignment with President Cyril Ramaphosa’s national priorities outlined in his Opening of Parliament Address, namely: promoting inclusive economic growth and job creation, reducing poverty and the cost of living, and strengthening a capable, ethical, and developmental state.

Mgcina said “These efforts have not only led to improvements in environmental and health outcomes but have also provided a positive economic impact. On average, each rehabilitation site has created 60 job opportunities for local community members contributing to local economic growth.” She told Parliament that “Following the enactment of the Artisanal and Small-Scale Mining (ASSM) Policy 2022, Mintek, in partnership with the Mining Qualifications Authority (MQA), has made notable progress in supporting aspirant artisanal and small-scale miners by empowering them with the expertise required to participate in the mining industry through the skills training programme. By the end of the previous financial year, at least 300 learners across the country have been equipped with valuable skills for a career in mining.  

Focus on governance yields clean audits
Mgcina said that building on the success of the 6th administration, wherein at least eight of the eleven state-owned entities that were reporting to the Department of Mineral Resources and Energy (DMRE) obtained either a clean or unqualified audit outcome in the 2023/24 financial year. “Our concerted efforts that are aimed at building a capable, ethical, and developmental state resulted in all entities reporting to the department obtaining either a clean or unqualified audit. Of these entities, at least seven are currently reporting to the DMPR, including Alexkor – which
is an additional entity that was transferred from the erstwhile Department of Public Enterprises to the DMPR. This is a clear demonstration that where there is a sharp focus on good governance, both the operational and financial risks will be kept to their bare minimum, if not completely eliminated.”, she added.

Challenges in the diamond sector
According to Mgcina, the diamond sector is facing a myriad of challenges which threaten its much-needed contribution to inclusive economic growth. The tough competition from lab-grown diamonds, economic and geopolitical risks, access to finance for emerging beneficiation businesses, and the decline in production at the De Beers’ Venetia Mine, Mgcina said, are among the major challenges that are confronting the industry.
She added that to ensure the resilience and competitiveness of South Africa’s diamond trade, the South African Diamond and Precious Metals Regulator (SADPMR) will implement a turnaround strategy that integrates digital technologies to enhance trade efficiency, transparency, and accessibility. To this end, funding has been allocated to ensure the successful implementation of these strategic initiatives, including the promotion of natural diamonds through effective marketing such as the diamond show which was hosted by the State Diamond Trader (SDT) in February this year.

Watch the full address here: