A legal perspective on unlocking South Africa’s exploration potential
At a glance
- In recent months, the Minister of Mineral and Petroleum Resources, Gwede Mantashe, has reignited the conversation: the country needs to accelerate exploration.
- With the launch of the Critical Minerals and Metals Strategy and support initiatives like the Junior Mining Exploration Fund, the Government is signalling its intent to position South Africa as a global exploration hotspot.
In recent months, the Minister of Mineral and Petroleum Resources, Gwede Mantashe, has reignited the conversation: the country needs to accelerate exploration.
With the launch of the Critical Minerals and Metals Strategy and support initiatives like the Junior Mining Exploration Fund, the Government is signalling an intent to position South Africa as a global exploration hotspot. But let’s be real, the path from prospecting to production is rarely straightforward.
Legal and regulatory hurdles
Whilst the Government’s call for exploration is welcome, the practicalities remain complex:
- Permitting and licensing delays: Securing exploration rights and environmental approvals can take years.
- Policy uncertainty: Shifts in policy, such as some of the material amendments introduced in the recent Draft Mineral Resources Development Bill, which was published for comment in May 2025, and other regulations, create hesitation for investors.
- Community and land engagement: Consultation and consent are non-negotiable, but processes are often inconsistent.
- Data gaps: Limited geological information makes greenfield exploration riskier and costlier.
These challenges aren’t necessarily deal-breakers to unlocking investment, but are practical realities to be navigated, which make it clear that careful planning, legal foresight, and strategic structuring are essential.
Exploration in the age of ESG
Today, exploration isn’t just about compliance; it’s about reputation, relationships, and sustainability. Forward-thinking companies are integrating ESG (environmental, social, and governance) principles from day one, including:
- Meaningful community engagement and benefit-sharing.
- Environmental stewardship from the outset.
- Responsible land and water use.
Handled well, ESG isn’t an obstacle; it’s an opportunity. Companies that get it right often enjoy smoother operations, stronger partnerships, and fewer disputes down the line.
Turn challenges into opportunities
Sound legal support can help companies:
- conduct due diligence on exploration rights, land access, and community issues to prevent disputes before they arise;
- structure exploration agreements with joint venture partners, funders, and contractors;
- navigate licensing regimes, co-ordinating with regulators to keep projects moving;
- embed ESG strategies that meet legal obligations and global investor expectations; and
- provide dispute resolution support to ensure challenges don’t derail projects.
Looking ahead
South Africa is sitting on world-class mineral potential. With regulatory certainty, efficient licensing, and meaningful ESG commitments, exploration could be a powerful engine for growth and innovation.
For clients, the message is clear: those who prepare, manage risks, and engage responsibly will be best positioned to seize the moment.
The information and material published on this website is provided for general purposes only and does not constitute legal advice. We make every effort to ensure that the content is updated regularly and to offer the most current and accurate information. Please consult one of our lawyers on any specific legal problem or matter. We accept no responsibility for any loss or damage, whether direct or consequential, which may arise from reliance on the information contained in these pages. Please refer to our full terms and conditions. Copyright © 2025 Cliffe Dekker Hofmeyr. All rights reserved. For permission to reproduce an article or publication, please contact us cliffedekkerhofmeyr@cdhlegal.com.
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