DMRE announces PMG Consortium as preferred bidder for mining cadastre

  • South Africa’s Department of Mineral Resources and Energy (DMRE), working with the State Information Technology Agency (SITA), has concluded the process to appoint a service provider for the design, implementation, maintenance, and support of the Mining Licensing System.
  • The have identified PMG Consortium (PGM) as the recommended bidder to provide the mining licensing system, which is commonly referred to as the Cadastre.

PGM is a conglomeration of three companies namely, Pacific GeoTech Systems, MITS Institute and Gemini GIS and Environmental Services.

Pacific GeoTech Systems (PGTS) has more than 23 years’ experience in delivering online enterprise resource management systems in jurisdictions such as British Columbia, New Brunswick, Manitoba, Nova Scotia, Nunavut, Northwest Territories, Ontario, and Yukon, Canada, Colombia; and Greenland.

MITS Institute (MITS) has more than 13 years’ experience in the provision of business, technology, and cyber solutions to private and public sector clients in South Africa.

Gemini GIS and Environmental Services (GGES) has more than 13 years’ experience in the provision of UAV surveying, mapping, monitoring, and inspection services to private and public sector clients in South Africa.

The DMRE reports that they are confident that the preferred bidder will be able to deliver the required mining licensing system that will heighten transparency in the application and processing of mining rights, permits and licenses.

South Africa’s current mining cadastre is currently dysfunctional and out of date causing extended delays in mining license applications. The industry as whole has suffered terribly from the administrational incompetence of government in this regard. When taking office over four years ago, the country’s Minerals and Energy Minister, Gwede Mantashe, set a target to attract at least 5% of the mining sector’s global exploration budget in a three to five year period. It has not happened. South Africa is still below 1%. Read more 

The problem extends to power generation projects development in all technologies. In terms of Section 53 of the Mineral and Petroleum Resources Development Act, any developer of a power generation project needs to first apply for permission from the mining rights holder and then apply from the Department of Mineral Resources and Energy for permission to go ahead with the development. Without a functional mining cadastre identifying the mining rights holder, developers are unable to move forward with their development works.

Author: Bryan Groenendaal

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