Saturday, December 6, 2025

Legal Shifts Rewriting South Africa’s Mining Playbook

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The eighth edition of Webber Wentzel’s annual Mining Round-Up unpacked how fast-moving regulation, climate policy and compliance trends are reshaping South Africa’s mining landscape. From new parental leave rights and revised safety rules to carbon budgets, tax scrutiny and the coal transition debate, the message was clear: regulatory readiness has become a strategic imperative.

Opening the session, Jonathan Veeran, Head of the firm’s Mining Sector Group, paid tribute to the late Manus Booysen, the founding architect of the Round-Up series and a respected partner who led the mining team for many years. “Manus exemplified humility, professionalism and generosity. His influence continues to shape how we engage with our clients and industry,” said Veeran. He reaffirmed the team’s “cradle-to-grave” advisory approach across the mining life cycle. Webber Wentzel has been ranked Africa’s top mining law firm for more than a decade.

The Employment Practice’s Partner, Lizle Louw, opened the technical discussions with the Constitutional Court ruling that transforms South Africa’s parental leave regime. The landmark judgment brought by the firm’s Pro Bono team found elements of the Basic Conditions of Employment Act and Unemployment Insurance Act unconstitutional, affirming equality in parental leave. Two employed parents may now share four months and ten days of cumulative leave, divided as they choose. “This creates real operational and financial considerations for employers. Mining, with predominantly male workforces, may see a significant rise in requests,” noted Louw. She further urged employers to update contracts, policies and payroll systems and to manage risks of abuse within shared entitlements.

The Head of Occupational Health and Safety,Kate Collier highlighted major updates to the Mine Health and Safety Act. New Winding Equipment Regulations modernise transport and safety standards underground, while Emergency Preparedness Regulations now require broader risk assessments and real-time employee location tracking in high-risk zones. Four new Mandatory Codes of Practice such as fire prevention, road and rail safety, change management and non-communicable diseases including mental health, come into force between October and November 2025. “These changes are not administrative. They reshape how mines plan for emergencies, monitor employees and manage health risks,” cautioned Collier. Failure to comply with the Chief Inspector’s guidelines constitutes an offence under the Act.

Environmental Partner, Paula-Ann Novotny turned to the Climate Change Act, which introduces legally binding carbon budgets for the private sector from March 2026. Mining is recognised as a priority sector and each operation will receive a five-year emissions cap linked to a mitigation plan. “The implications are far-reaching. Non-compliance risks both environmental penalties and additional taxation under the Carbon Tax Act,” explained Novotny. The draft regulations and technical guidelines published in August 2025 outline how budgets will be allocated. She advised that it is best to engage early, build internal governance and start modelling emissions now.

The sector’s most uncomfortable debate came from Garyn Rapson, Head of the ESG Practice, who unpacked the paradox of coal being listed as a critical mineral under South Africa’s Critical Minerals Strategy, despite the Just Transition Framework targeting fossil-fuel phase-out. “Coal may play a transitional role but calling it critical sends the wrong signal,” said Rapson. He proposed reconciliation points such as short-term reliance for energy security, extraction of critical minerals from coal ash and transition funding to reskill coal-dependent communities. Rapson added, “This is not about demonising coal. It’s about a responsible, science-based transition.”

On tax, Partner Shirleen Ritchie warned that SARS has placed mining in its high-risk focus group under the Amabillions Project, targeting supply chains, royalties, diesel rebates, PAYE compliance and transfer pricing. “There is renewed emphasis on documentation and audit readiness. Evidence wins cases. Maintain contemporaneous records and ensure positions are commercially defensible,” stated Ritchie.

Moreover, the Corporate Partner, Giada Masina discussed the Mineral and Petroleum Resources Development Amendment Bill, published in May 2025. While it promises regulatory certainty, she warned the current drafting may have the opposite effect. Concerns include the proposed removal of the ‘controlling interest’ threshold in Section 11, potential bottlenecks on ministerial approvals, ambiguity on subdivisions of rights and broad ministerial discretion to change BEE criteria without consultation. “The industry supports oversight where control genuinely changes hands but these provisions risk over-regulation and administrative gridlock,” explained Masina.

Closing the session, Siya Ngcamu, Partner in Employment and Employee Benefits, examined the increasing legal duty on mining companies to address gender-based violence in and beyond the workplace. The new Guidance Note on the Management of GBV in the Mining Industry took effect on 1 November 2025, formalising a zero-tolerance stance. A recent CCMA ruling confirmed that employers may discipline staff for off-duty acts of GBV that interfere with workplace trust, even while criminal cases are pending. “The duty to act extends beyond the mine gates. Companies should update policies, train staff and ensure fair, consistent disciplinary procedures,” urged Ngcamu.

The 2025 Mining Round-Up made one thing clear, that compliance is no longer a regulatory box-ticking eexercise but it is central to strategy, competitiveness and risk management. “Mining remains vital to South Africa’s economy but success depends on legal agility, responsible leadership and readiness for the changes still to come,” concluded Veeran.

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