Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002)

The approved structure of the Small-Scale Mining Directorate within the department of Mineral Resources and Energy is wholly inadequate to support the ASM industry. There is also lack of co-operation and co-ordination with other relevant Government Departments who may have a direct interest and can add value to the development of the ASM industry for example the Department of Trade  Industry and Competition (the DTIC), Department of Small Business Development (DSBD). Cooperative Governance and Traditional Affairs (COGTA), Department of Environment Forestry and Fisheries (DEFF).

One of the major challenges for the ASM industry is lack of funding. This is despite the existence of a plethora of developmental funding institutions. There are no synergies between the mandate and activities of the Small Scale Mining Directorate and these DFI's. Government efforts in the past to improve institutional capacity have not yielded the desired results. The ASM industry is hugely  fragmented and there are no recognisable associations or organised structures to address its issues.

Government policy proposals:

The Department should review the capacity of the Directorate Small Scale Mining and re-establish the unit with a fully capacitated and functional unit that is able to facilitate licensing and support of ASM industry, implement and enforce compliance and monitor and evaluate the effectiveness of the policies, laws and regulations.

The Department should formalise the institutional arrangements and multi-stakeholder co-ordination in relation to legislation. Provision for the establishment of this directorate within the office of the Regional Manager and the definition of the role of this office should be adopted for the artisanal and small-scale mining framework.

The policy and legal framework should promote the formation of co-operatives and concessions. These co-operatives and concessions will be preferred when processing applications due to their potential in maximising and spreading the impact of the project whilst also sharing in the risks.

ASM is mostly plagued by financial challenges hence the proliferation of illegal operations.The implementation of s27 of the MPRDA has identified challenges with the provision of financial assistance to Small Scale Mining (SSM) one of which is insufficient funds available. Although government may not be in position to provide finances, ASM should be assisted in strengthening their business case in order to approach various funding institutions for this assistance and investments into ASM operations through extended services.

One of the key challenges identified in respect of ASM is lack of training in various disciplines including business management and technical skills for efficient mining of mineral resources identified. Collaboration with institutions such as the MQA and MINTEC which has training programs to assist small scale miners including the HDSA entry miners support program and the ASM Mining School. These programs must be geared toward training in environmental management, health and safety and business management skills.This will be critical for the formalisation of the industry to ensure ASM is sustainable and able to comply with the necessary requirements.