South Africa Introduces Key Policy Reforms To Boost Competitiveness Of Extractive Industries

CAPE TOWN, South Africa, July 14, 2025/APO Group/ --

South Africa’s Ministry of Mineral and Petroleum resources has introduced four key policy changes aimed at strengthening the competitiveness of the country’s mining and petroleum industries. The policies, aligned with broader economic growth objectives, seek to attract new investment across the extractives sector while enhancing value addition and industrialization. As the world’s top producer of platinum group metals (PGMs), policy reforms stand to support accelerated growth across the PGM industry.

The upcoming African Mining Week (AMW) conference – Africa’s premier gathering for mining stakeholders, scheduled for October 1–3, 2025 in Cape Town – will feature a dedicated panel on South Africa’s PGM sector. The discussion will showcase how recent policies are creating opportunities within the country’s PGM market, exploring investment opportunities, challenges and anticipated policy-led growth.

Mineral Resources Development Bill

South Africa published its draft Mineral Resources Development Bill on May 20, 2025, for public comment. Set to replace the 2002 Mineral and Petroleum Resources Development Act, the new law addresses key industry challenges, empowers small-scale mining and promotes local beneficiation of minerals. The law seeks to ensure revenue generated from the industry is channeled into the formal sector and contributes to GDP growth. In 2024, the mining sector generated R674 billion in export earnings and R451 billion to GDP. The public has until August 8, 2025, to comment on the bill.

Petroleum Products Bill

The Department of Mineral and Petroleum Resources is expected to submit the Petroleum Products Act Amendment Bill (PPB) of 2024 to Cabinet for approval before the end of 2025. The bill aims to streamline licensing and appeals processes, increasing the oil and gas sector’s contribution to economic transformation, job creation and security of petroleum product supply. The new law was submitted for public comments on October 21, 2024 and aims to replace the 1977 act.

Upstream Petroleum Resources Development Act

South Africa is set to complete the implementation of the new Upstream Petroleum Resources Development Act by September 2025. The law creates an investor-friendly regime for oil and gas investors, promotes economic growth and expands opportunities for local companies and entrepreneurs across the petroleum value chain. The act was signed by South African President Cyril Ramaphosa in 2024 and is expected to come into effect following the introduction of new Petroleum Regulations.

According to South Africa’s Minister of Mineral and Petroleum Resources Gwede Mantashe, the law has not only created legislation that is investor-friendly for the oil and gas sector, but has also ensured that there is a dedicated regulatory regime for the sector given its potential for economic contribution and job creation.

The Mine Health and Safety Amendment Bill

The Mine Health and Safety Amendment Bill was tabled to parliament in late 2024 and seeks to amend the act of 1996. The bill aims to advance stakeholder adoption of modern health and safety practices, driving the country’s agenda of zero harm across the mineral industry. Key provisions include measures to streamline administrative processes, strengthen managerial responsibility and accountability while enhancing mine safety training and adoption.