the-south-african-mining-industry-on-the-road-to-mangaung-208925bcff5ee1a6.pdf

This report analyzes the state of the South African mining industry following the August 2012 Marikana massacre. It argues that the tragedy was a symptom of deeper structural issues, including poor living conditions for mine workers, a failing Black Economic Empowerment (BEE) framework, and a volatile regulatory environment. The author calls for a 'new social contract' involving community development agreements and a shift toward broad-based empowerment to ensure sustainable growth and prevent further violence.

• The Marikana shootings on August 16, 2012, where 34 mine workers were killed by the South African Police Service (SAPS), highlighted failures in government accountability and police proportionality. The author questions why the Ministers of Labour and Mineral Resources were absent until the day after the shootings and why the SAPS tactical response team was deployed without riot gear.
• South Africa's mining industry faces declining international investor confidence due to policy uncertainty, nationalisation rhetoric, and administrative inefficiency. In the Fraser Institute's 2011/2012 survey, South Africa ranked 54th out of 93 jurisdictions for 'policy potential', trailing behind Namibia and Botswana.
• The platinum sector is experiencing a 'perfect storm' of rising local costs and falling global prices. Labour costs, which make up about 60% of the cost base, have increased by approximately 10% annually for 18 years, while electricity costs have risen 15-25% annually over the last three years. This has led to margin squeezes and operational suspensions by companies like Aquarius Platinum.
• The current Social and Labour Plan (SLP) framework is criticized as being 'formulaic and formalistic' and treated as a 'paper exercise' for licensing. The author suggests replacing or augmenting SLPs with Community Development Agreements (CDAs), similar to models in Nigeria, Sierra Leone, Papua New Guinea, and Mongolia, to give mine communities a direct voice in their development.
• Black Economic Empowerment (BEE) in mining is described as 'narrow' BEE, which enriches a small, well-connected elite rather than workers or marginalized communities. The author argues that this failure fuels populist support for nationalisation and suggests that employee share schemes and community trusts should be compulsory under the Mining Charter.
• The ANC's SIMS report rejects wholesale nationalisation but proposes 'strategic nationalisation' of specific companies and the identification of 'strategic minerals' (including coal, iron ore, and platinum group metals). The author warns that proposed export tariffs and local procurement quotas could breach World Trade Organization agreements and discourage investment.

APA

South African Institute of International Affairs (n.d.). the-south-african-mining-industry-on-the-road-to-mangaung-208925bcff5ee1a6.pdf. https://saiia.org.za/wp-content/uploads/2012/08/The-South-African-mining-industry-on-the-road-to-Mangaung.pdf

Chicago

South African Institute of International Affairs. the-south-african-mining-industry-on-the-road-to-mangaung-208925bcff5ee1a6.pdf. n.d. https://saiia.org.za/wp-content/uploads/2012/08/The-South-African-mining-industry-on-the-road-to-Mangaung.pdf.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=the-south-african-mining-industry-on-the-road-to-mangaung-208925bcff5ee1a6.pdf |url=https://saiia.org.za/wp-content/uploads/2012/08/The-South-African-mining-industry-on-the-road-to-Mangaung.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairsndthesouthafricanminingindustryontheroadtomangaung208925bcff5ee1a6pdf, author = {{South African Institute of International Affairs}}, title = {{the-south-african-mining-industry-on-the-road-to-mangaung-208925bcff5ee1a6.pdf}}, institution = {South African Institute of International Affairs}, url = {https://saiia.org.za/wp-content/uploads/2012/08/The-South-African-mining-industry-on-the-road-to-Mangaung.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }