Restoring South Africa’s mining sector as a key contributor to the economy is the thrust of a draft mining bill released by the Institute of Race Relations (IRR) today.
The Growth and Employment in Mining (GEM) Bill was the subject of a webinar discussion this morning between the Institute’s Head of Policy Research Dr Anthea Jeffery and Projects and Publications Manager Terence Corrigan. (You can watch a recording of the webinar at https://www.youtube.com/watch?v=6H6RZrDT1hY.
The bill is one of several pieces of legislation drafted by the IRR over the past year to show #WhatSouthAfricaCanBe “once it escapes the heavy hand of a corrupt and dysfunctional state committed to a coercive and destructive ideology”, as Dr Jeffery puts it her piece on the Daily Friend today, Alternative bill, released today, to make mining “investable” again.
The IRR points out that while South Africa’s mining sector remains central to the economy, it is operating far below its potential.
Mining’s share of GDP has fallen from 21% in 1980 to around 7% today. As a result, the industry has lost roughly 55,000 jobs between 2008 and 2025. Investors have increasingly directed capital to jurisdictions seen as more secure and predictable, and exploration spending has weakened from R6.3 billion in 2006 to about R738 million in 2025.
The IRR argues that this decline is closely linked to South Africa’s mining law framework, including state custodianship of mineral rights, BEE ownership requirements, licensing delays and wide bureaucratic discretion. These features weaken property rights, raise the cost of doing business and increase the risk that mining rights decisions are shaped by politics, patronage or corruption.
In contrast, the Institute’s GEM Bill places technical capacity, financial resources, safety compliance, environmental obligations and land rehabilitation at the centre of mining rights decisions.