Introduction
On 20 May 2025, the Department of Mineral Resources and Energy published the Draft Mineral Resources Development Bill, 2025 (“Bill”) for public comment. The Bill proposes comprehensive amendment of the Mineral and Petroleum Resources Development Act, 2002 (“MPRDA”).
Key themes of the Bill include the formalisation of artisanal and small-scale mining, proactive enforcement measures, strengthened community consultation obligations, clearer regulation of co-mined or “associated” minerals, and significant implications for corporate transactions through a new definition of “controlling interest”. The Bill also proposes regulatory clarity and transitional arrangements for historic mine dumps.
Although the Bill seeks to modernise and align South Africa’s mineral law framework with contemporary development goals, it introduces several procedural ambiguities that stakeholders will need to navigate carefully.
Key Changes Introduced by the Bill
- Separation of Petroleum from Mineral Law
All references to petroleum have been excised from the MPRDA, in line with the enactment of the Upstream Petroleum Resources Development Act, 2024. This is intended to create regulatory certainty and streamline oversight by dedicating petroleum regulation to a distinct legal regime. - Addressing Illegal Mining: Artisanal Mining and Small-Scale Mining
A new licensing regime under section 27A introduces artisanal mining rights, limited to 1.5 hectares and valid for up to two years. Section 27 of the MPRDA will regulate “small scale” mining permits. The Minister may designate areas and invite applications, particularly from historically disadvantaged persons. Sections 5B and 5C introduce offences for aiding illegal mining and handling minerals without proper documentation. - Regulation of Historic Dumps and Residue Stockpiles
For the first time, historic mine dumps created before the MPRDA must be regularised. Holders must apply for rights or include the dumps in mining programmes within two years of the Amendment Act’s commencement. Otherwise, the minerals revert to the State. - Newly Defined “Associated Minerals”
“Associated minerals” are defined as minerals that are physically inseparable from the primary mineral. Holders must declare and apply to include them in mining rights under section 102. This resolves uncertainty in multi-mineral deposits. - Expanded Consultation Requirements
The Bill requires meaningful community consultation on Social and Labour Plans before rights are granted. “Community” includes historically disadvantaged groups in local and district municipalities. “Landowner” includes persons with unregistered rights protected under law. - Institutional Oversight: Advisory and Regional Committees
A Ministerial Advisory Council will advise on policy, transformation, and beneficiation. Regional Mining Development and Environmental Committees will manage objections and recommend outcomes. - Definition of Controlling Interest
The Bill defines “controlling interest” to include both direct and indirect control in listed and unlisted entities. Ministerial consent is now required for such changes, potentially complicating corporate transactions. - Streamlined Appeals and Transitional Clauses
All MPRDA-related appeals will be consolidated under the Minister of Mineral and Petroleum Resources. Environmental appeals will be directed to the appropriate minister(s) for Water, Sanitation, Forestry, Fisheries, and the Environment. - Apparent Application Contradictions in Sections 9, 16, and 22
Section 9 bars acceptance of applications over land with existing rights, yet sections 16 and 22 mandate acceptance of applications for different minerals on the same land. This internal contradiction may cause legal uncertainty. - Alignment with the Mawetse Judgment
The definition of “effective date” of mining rights is revised to match the Mawetse judgment: rights become effective upon grant, not execution. This aids clarity on renewal deadlines. - Environmental Authorisations Post-Acceptance Only
Environmental authorisations can now only be applied for after the application for a right or permit is accepted, not before.
Conclusion
The 2025 MPRDA Amendment Bill signals a fundamental shift in South Africa’s mining regulatory framework. While aiming to promote transformation, certainty, and beneficiation, the proposed mechanisms — such as declarations of associated minerals, consent requirements for control changes, and broader consultation — will require significant adjustments from mining companies.
Mining stakeholders should begin evaluating the Bill’s impact on their rights, planned deals, and community strategies. The two-year window for historic dumps, clarity on associated minerals, and heightened consultation standards demand early attention.
Comments on the Bill must be submitted by 13 August 2025 to ensure practical and legal perspectives are considered in the final legislation.
The definition
