MINING FOR A LOW-CARBON ECONOMY
Summary
The document argues that South Africa's reliance on coal has created an economic path dependency that now exposes the country to shrinking export markets and trade barriers as global climate policies tighten. To mitigate this, the author proposes a three-pronged approach: increasing investment in minerals essential for clean technologies (such as PGMs, chromium, and manganese), redeploying retrenched miners to municipal infrastructure projects, and establishing a national programme to rehabilitate over 6,000 derelict mines. The brief emphasizes a 'Just Transition' framework, calling for a dedicated taskforce and the integration of climate considerations into the Mining Charter and the Mineral and Petroleum Resources Development Bill.
Key insights
- South Africa's coal-dependent economy faces significant risks from global climate policy, including shrinking export markets and potential trade barriers like border tax adjustments for carbon-intensive products.
- The transition to a low-carbon economy depends on minerals and metals that South Africa possesses in abundance, specifically platinum group metals (PGMs), chromium, and manganese, which are essential for clean technologies like fuel cells and electric vehicles.
- There is a significant employment opportunity in the rehabilitation of more than 6,000 derelict and ownerless mines; if 50 jobs were created per site, it would generate approximately 300,000 jobs.
- The Auditor General estimates that the state funds required for the rehabilitation of these 6,000+ derelict mines amount to R32 billion, though the document argues the 'polluter pays principle' should ensure mining companies cover these costs.
- Current mining legislation, including the Mineral and Petroleum Resources Development Act and the Mining Charter, does not address climate change considerations.
- A 'Just Transition' for the mining workforce should involve redeploying retrenched miners to rebuild and maintain infrastructure within the municipalities where the mines operated, potentially linking to COGTA's efforts in 87 distressed municipalities.
Cite the original document
- 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} }
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