South Africa’s Mining Future: Experts Call for Post-Mining Economic Strategy

Falling investment highlights urgent need for post-mining economic planning

South Africa’s once-thriving mining sector is facing a critical crossroads. A recent Fraser Institute survey has painted a worrying picture for the country’s international investment appeal, ranking it 68 out of 82 investable mining jurisdictions.

Experts warn that if South Africa doesn’t adapt, the economic consequences could be severe.

Mining is not infinite

Mining expert David van Wyk says the decline in investor confidence is not purely about policy. Instead, he points to a deeper, structural challenge: minerals are finite, and mining, by nature, cannot sustain an economy indefinitely.

“We need to repurpose and reengineer mines for post-mining economic activities,” Van Wyk explains. “The focus should be on planning for diversification and evolving a post-mining economy.”

The expert argues that while large mining companies have generated enormous profits over the years, the sector’s long-term sustainability is limited. As resources dwindle, South Africa must transition towards small and medium-scale operations, including artisanal mining, to maintain economic stability and employment.

Policy and investor sentiment

The Fraser Institute survey highlighted that international investors are concerned about political stability, socioeconomic agreements, and South Africa’s geological data transparency.

However, DA spokesperson James Lorimer sees a policy angle as well. He says current mining legislation and the pending mineral resource amendment Bill are adding regulatory hurdles, deterring investment.

“He is spending a great deal of time talking about his critical minerals strategy, which is wordy but largely meaningless,” Lorimer said of Minister Gwede Mantashe. He added that over-regulation, excessive ministerial powers, and B-BBEE requirements are major deterrents for investors.

The DA is planning to submit public comments on the draft amendments, arguing for legislation that encourages investment while reducing red tape and punitive compliance requirements.

The role of small-scale and artisanal miners

Zethu Hlatshwayo, spokesperson for the National Association of Artisanal Miners, emphasised that alongside attracting foreign investment, empowering local miners is crucial.

“Small-scale miners can play a vital role in sustaining the economy,” Hlatshwayo said. By creating opportunities for local entrepreneurs, South Africa can generate employment and keep wealth circulating within communities, even as large-scale mining slows.

A call for action

With global interest in South Africa’s mining sector waning, industry experts agree: waiting is not an option. The country needs a clear post-mining strategy that balances investment attraction, local empowerment, and sustainable economic growth.

Without decisive planning, South Africa risks not only a decline in mining revenue but also job losses and further strain on public finances. The coming years may determine whether the nation can turn its rich mineral legacy into a foundation for a diversified, resilient economy.

{Source: The Citizen}

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