Mineral Policy Review: Findings and Recommendations Report

The report finds that South Africa's mining sector is in a state of economic decline, with its share of real GDP falling from 11.1% in 1993 to 4.8% in 2023. It argues that the MPRDA has failed to facilitate growth or efficient regulation, contributing to a 'dried up' project pipeline and a global exploration expenditure share that has stagnated below 1% since 2020. Key constraints include institutional capacity gaps at the Department of Mineral Resources and Energy (DMRE), infrastructure failures in electricity and logistics, and a profound trust deficit between government, industry, and host communities. The report recommends urgent amendments to the MPRDA to address regulatory uncertainties, the formalisation of artisanal and small-scale mining, and the adoption of a new, multi-stakeholder vision for the industry to restore investor confidence.

• The South African mining sector has experienced a sustained economic decline, with its real share of GDP dropping from 11.1% in 1993 to 4.8% in 2023, and an average annual growth rate of -0.4% since 1994.
• Investment in the sector has stagnated, with Net Fixed Capital Formation (NFCF) as a percentage of mining GDP shrinking to nearly zero, and the country's share of global exploration expenditure remaining below 1% since 2020.
• The MPRDA is viewed as fundamentally sound but contains problematic clauses and is administered inconsistently, which deters international investment and increases compliance costs.
• The Department of Mineral Resources and Energy (DMRE) suffers from significant capacity constraints, leading to a substantial backlog of unresolved applications for mining rights, renewals, and transfers, particularly in Mpumalanga and the Northern Cape.
• There is a critical lack of legal recognition for sub-industrial scale mining in the MPRDA, which contributes to the proliferation of illegal mining and hinders the development of junior miners.
• Regulatory misalignment between the MPRDA, the National Environmental Management Act (NEMA), and the National Water Act has created administrative ambiguity and a 'greens versus growth' conflict between the DFFE and DMRE.
• A massive trust deficit exists between the government, mining companies, and host communities, exacerbated by dysfunctional local government and Social and Labour Plans (SLPs) that fail to deliver impactful results.
• While B-BBEE deals exceeding R235 billion since 2000 have advanced ownership transformation, ongoing uncertainty regarding the Mining Charter and the 2021 High Court ruling continues to deter investors.
• Structural constraints, specifically unreliable electricity supply and decaying transport and logistics infrastructure (Transnet), act as binding barriers to sector growth.

APA

Good Governance Africa (2024). Mineral Policy Review: Findings and Recommendations Report. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2024/11/Mining_Policy_Review_2024.pdf

Chicago

Good Governance Africa. Mineral Policy Review: Findings and Recommendations Report. 2024. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2024/11/Mining_Policy_Review_2024.pdf.

Wikipedia

{{cite report |author=Good Governance Africa |title=Mineral Policy Review: Findings and Recommendations Report |date=August 2024 |url=https://digitalmallblobstorage.blob.core.windows.net/wp-content/2024/11/Mining_Policy_Review_2024.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{goodgovernanceafrica2024mineral, author = {{Good Governance Africa}}, title = {{Mineral Policy Review: Findings and Recommendations Report}}, institution = {Good Governance Africa}, year = {2024}, month = aug, url = {https://digitalmallblobstorage.blob.core.windows.net/wp-content/2024/11/Mining_Policy_Review_2024.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }