The Portfolio Committee on Mineral and Petroleum Resources has described the approval of 20 artisanal miners for the artisanal small-scale miners funding as slowing the eradication of illegal mining.
As part of the Department of Mineral Resources and Energy (DMRE) efforts aimed at facilitating and opening up funding opportunities, the department published an invitation for artisanal miners and small-scale miners to apply for funding designated to assist with financial provision for rehabilitation and capital equipment.
Artisanal and Small-Scale Mining (ASM) refers to mining operations conducted by individuals or groups with minimal or no mechanisations, many use shovels and picks.
According to Minerals Programmes and Projects DDG, Thabo Kekana, more than 114 applicants submitted their requests for financial assistance during the 2023/24 financial year. Of these, only 20 projects were approved and disbursements are anticipated to be concluded by November 30.
“Governed through a memorandum of agreement between DMRE and Industrial Development Corporation (IDC), the fund aims to alleviate challenges faced by the subsector to access commercial funding for startup projects that are considered as high risk. A total of R68 million was approved for funding, R66.9 is for capital equipment and R1.1 million for rehabilitation guarantees. Beneficiaries are from North West, Free State, Northern Cape, Mpumalanga, Limpopo and KwaZulu-Natal (and) three women-owned projects,” said Kekana.
He said funding calls for 2024/25 are underway. The criteria include that applicants must have valid mining permits and preferably in rural communities.
Kekana said some challenges faced by the artisanal sector included the current framework that has limitations which leads to illegal mining activities.
“Re-emergence of illegal mining activities linked to ASM is an imminent challenge to the development of the sector. ASM are aspirant miners who are keen to be legalised, following the correct legal procedures. It is inadequately monitored due to its nature. The sector has high potential for employment creation and poverty alleviation. The department is working on mechanisms to ensure adequate monitoring and compliance.
“It is now crucial to consider amending the Mineral and Petroleum Resources Development Act appropriately; and incorporate new and high impact concepts. To ensure clear distinction of ASM from other related concepts such as Junior Mining and Large-Scale Mining,” said Kekana.
Committee chairperson Mikateko Mahlaule said: “The umber of approved applications is going to slow down the process of what we would like to achieve. There is too much rejection with limited explanations to the people, you can’t say you did not comply but not teach how to comply.
It is the department’s responsibility to guide and direct rather than just send them away.”
Cape Times