MINING FOR A LOW-CARBON ECONOMY

This policy brief by the Institute for Economic Justice (IEJ) outlines a strategic framework for transitioning South Africa's mining sector toward a low-carbon economy. It addresses the economic risks associated with coal dependency, the need for investment in minerals essential for clean technologies, and proposals for a 'just transition' to protect mineworkers and local communities through reskilling and infrastructure redeployment.

• South Africa's economy faces significant risks due to its path dependency on coal, which produces the majority of the country's greenhouse gas emissions. This exposure includes shrinking markets for coal exports and potential trade barriers, such as border tax adjustments, for carbon-intensive products like combustion engines and locally produced iron and steel.
• The transition to a low-carbon economy requires increased investment in specific metals and minerals used in clean technologies. South Africa holds the world's highest deposits of manganese, chromium, and platinum group metals (PGMs). Key materials include steel for wind energy foundations and turbines, aluminium for pumped storage hydropower and rotor blades, and various metals (including cobalt, lithium, and rare earth oxides) for electric vehicle batteries.
• To mitigate job losses in the mining sector, the document proposes redeploying retrenched miners to develop and maintain infrastructure within the municipalities where the mines operated. This could be linked to the Department of Cooperative Governance and Traditional Affairs (COGTA) initiative to address issues in 87 distressed municipalities.
• There is a significant opportunity for job creation through the rehabilitation of derelict mines. The Department of Mineral Resources (DMR) has identified over 6,000 such mines; the brief suggests that creating 50 jobs per site could result in 300,000 new jobs. The Auditor General estimates the state cost for this rehabilitation at R32 billion, though the brief argues the 'polluter pays principle' should apply.
• The brief recommends several policy interventions to create certainty for a low-carbon economy, including the finalization of the Mining Charter and the Mineral and Petroleum Resources Development Bill to include climate considerations. It also advocates for a carbon tax to make low-carbon investments more attractive and the establishment of a Just Transition Taskforce driven by the Presidency and housed in NEDLAC.
• The document outlines a role for unions in the transition, suggesting they negotiate for the reskilling of workers, the sharing of savings from carbon-reducing measures with employees, and the creation of a job loss fund for older and retrenched workers.

APA

Naudé, L., & Rivett-Carnac, K. (2018). MINING FOR A LOW-CARBON ECONOMY. Institute for Economic Justice. https://iej.org.za/wp-content/uploads/2020/07/Stream-1-Policy-Brief-2d-Mining-for-a-Low-Carbon-Economy.pdf

Chicago

Naudé, Louise, and Kate Rivett-Carnac. MINING FOR A LOW-CARBON ECONOMY. Institute for Economic Justice, 2018. https://iej.org.za/wp-content/uploads/2020/07/Stream-1-Policy-Brief-2d-Mining-for-a-Low-Carbon-Economy.pdf.

Wikipedia

{{cite report |last1=Naudé |first1=Louise |last2=Rivett-Carnac |first2=Kate |title=MINING FOR A LOW-CARBON ECONOMY |publisher=Institute for Economic Justice |date=August 2018 |url=https://iej.org.za/wp-content/uploads/2020/07/Stream-1-Policy-Brief-2d-Mining-for-a-Low-Carbon-Economy.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{naud2018mining, author = {Naudé, Louise and Rivett-Carnac, Kate}, title = {{MINING FOR A LOW-CARBON ECONOMY}}, institution = {Institute for Economic Justice}, year = {2018}, month = aug, url = {https://iej.org.za/wp-content/uploads/2020/07/Stream-1-Policy-Brief-2d-Mining-for-a-Low-Carbon-Economy.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }