This is the view of long-time Mining Analyst Peter Major, who on Tuesday warned that without decisive policy shifts and stronger state performance, the country will continue to lose investment to regional competitors.
Major says mining everywhere is inherently difficult, but SA now faces “abnormal” obstacles that have eroded its competitiveness. He argues that while entities such as Eskom, Transnet and the Industrial Development Corporation were established to ease risks and attract capital, decades of mismanagement and new regulatory burdens have reversed those gains.
“Mining here has more challenges than at any point in its history,” he says, noting that investors are redirecting billions of Dollars to the Democratic Republic of Congo, Zambia and other African markets. He cites unreliable electricity supply, collapsing rail and port infrastructure, policy uncertainty, illegal mining and criminal syndicates as major deterrents.
Despite government acknowledging the problems, Major believes little has changed.
“Talking is at the back of the dictionary; doing is at the front,” he says, arguing that the state must either rescind obstructive legislation or hand over certain functions to capable private operators.
On Anglo American’s divestment and potential move to Canada, Major says the shift should not alarm SA, given that Canadian markets have shown a greater appetite for African mining investment in recent decades. Retaining Anglo’s secondary listing on the Johannesburg Stock Exchange, however, remains crucial for local investors.
Major also raises concern about delays in SA’s mining cadastral system, which he says has been mishandled for more than 20 years. Without a functional, transparent licensing platform, exploration will remain constrained.
He sees promise in the newly opened mine in Limpopo Province, calling it a rare example of large-scale investment driven by global mining entrepreneur Robert Friedland. Major says such projects could revive employment and growth if replicated, but investors require certainty before committing billions to deep-level mining.
With critical minerals now central to global energy transitions, Major warns that SA risks missing a generational opportunity unless it restores confidence and removes self-inflicted barriers to growth.
–ChannelAfrica–
