The time is now to unshackle SA’s mining sector

South Africa’s mining sector stands as a cornerstone of our national economy, yet it operates with one hand tied behind its back. As the Minerals Council South Africa, representing 90% of annual mineral production by value, we witness daily the immense potential of an industry that directly employs 474,876 people and generates R191bn in employee earnings as of end-2024.While employment numbers have declined, payments per employee have increased, demonstrating the sector’s commitment to improving the lives of its workforce, their families and the communities in which they live.However, this vital industry faces a web of constraints that prevent it from unleashing its full economic contribution to the economy and South Africa’s citizens, as well as unlocking its critical mineral potential. The time has come for decisive government action to unshackle the private sector and allow mining to drive South Africa’s economic recovery, growth and job creation.The most pressing issue is regulatory uncertainty. Mining companies cannot make long-term investment decisions when regulatory frameworks shift unpredictably. This uncertainty cascades through every level of operation, from exploration to production, deterring both local and international investment. Companies need clear, stable and globally competitive rules that remain consistent across political cycles.Administrative capacity represents another critical bottleneck. The absence of a functioning minerals cadastre continues to hamper fair and efficient administration of mining and prospecting rights. This system, long-awaited by industry, would provide transparency and timely in rights allocation. Currently, the lack of coordination between government departments creates a bureaucratic maze. The industry would benefit from a one-stop shop for mining rights approvals to enable companies to navigate multiple departments with their variious requirements and timelines.One visionGovernment, labour and industry must develop a shared vision for what makes mining work effectively and attractive for investors.. Regular, meaningful consultation between government, labour and mining companiesrepresented by the Minerals Council would address the trust deficit that hampers the development of a common understanding of what would constitute a thriving mining industry. This shared vision would bridge this gap and create policies that achieve social objectives while enabling economic growth and job creation in the mining industry with its upstream and downstream multiplier effect.Beyond regulatory challenges, infrastructure constraints pose existential threats to mining competitiveness. Transnet’s operational bottlenecks limit the ability to move bulk commodities to offshore markets efficiently. South African mineral exports totalled R776bn in 2024, a key revenue generator for the country. Rail and port constraints directly translate to lost revenue and reduced global competitiveness. Meanwhile, Eskom’s above-inflation and rapidly escalating electricity prices are a concern for energy-intensive mining operations and value-adding processes like refineries.The solutions are clear: create a globally competitive regulatory environment, implement a modern and transparent mining cadastre, streamline regulatory processes, coordinate between departments to create a one-stop shop for mining, removeinfrastructure bottlenecks, and develop a shared vision for mining’s futureThe solution requires urgent implementation of structural reforms to include the private sector in rail and energy at a far more rapid rate. Renewable energy projects must be fast-tracked to supplement Eskom’s capacity and provide cost-effective alternatives for mining operations.South Africa possesses world-class mineral resources and mining expertise. Our industry has weathered numerous challenges and continues contributing significantly to employment, foreign exchange earnings, employee and community upliftment, and government revenue. However, realising the sector’s full potential requires government partnership, not obstruction.The mining industry stands ready to invest, create jobs, and drive economic growth. What we need is a government committed to removing barriers to encourage investment in exploration, mine development and existing operations. The solutions are clear: create a globally competitive regulatory environment, implement a modern and transparent mining cadastre, streamline regulatory processes, coordinate between departments to create a one-stop shop for mining, removeinfrastructure bottlenecks, and develop a shared vision for mining’s future.South Africa cannot afford to waste its mining potential any longer. The time for action is now.The post The time is now to unshackle SA’s mining sector appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com