Mining has always been central to SA’s economy, contributing R450.5bn to GDP and employing more than 474,870 people.
But in the 21st century, the fortunes of the industry will not depend solely on geology or commodity cycles. The decisive factor will be the trust of the communities who live alongside mines. Securing a “social licence to operate” is no longer a matter of corporate responsibility; it is an essential condition for investment, productivity and long-term viability. Arguably, companies that empower indigenous communities as partners are laying the foundation for lasting relationships while strengthening their brand.
Building trust with communities will enable the mining houses to avoid court litigations with the communities. In this case, in January 2021, the MEC purported to exercise his powers in terms of section 29 of the Protected Areas Act to deproclaim four properties to enable a coal mine to go ahead.
The Mabola coalition challenged the decision on grounds that it was unlawful and biased and eroded protection for an area that is ecologically sensitive and economically important as a strategic water source area for SA as a whole. Therefore, the court ruled against the mine, safeguarding the Mabola Protected Environment. The case reaffirmed the legal protection afforded to ecologically sensitive areas in 2024.
SA remains one of the most challenging environments for mining. Community protests regularly disrupt operations, with an average of 35 demonstrations in mining areas each month, accounting for about 2.8% of all service delivery protests.
Illegal mining compounds the pressure. PwC estimates losses from illicit activity will surge to R60bn in 2025, up from just R7bn in 2017. This is more than opportunistic crime: it reflects the desperation of communities living near the country’s 6,000-plus derelict and ownerless mines.
The industry recognises this challenge. In 2023, mining companies spent an estimated R4.9bn on social investment and development programmes aimed at improving the quality of life in mine-hosting communities. Yet questions remain over how effective these programmes have been. As the global race for critical minerals intensifies, these questions will only grow sharper.
The energy transition is reshaping the sector. Demand for minerals such as platinum-group metals, cobalt and lithium is expected to soar. The International Energy Agency’s latest outlook projects demand for energy transition minerals could triple by 2030 and increase by three-and-a-half times by 2050 under its net-zero scenario. Meeting this demand will require new exploration and extraction. S&P Global estimates much of this activity will take place on or near indigenous or local community land. The risks are obvious: without trust and legitimacy, projects will stall or collapse.
SA is well placed geologically to benefit. It possesses some of the world’s richest reserves of platinum-group metals and manganese, both critical for clean energy technologies. It has also sought to position itself as a hub for responsible mineral development through co-operation with international partners, including the UK.
Yet the investment reality is grim. SA accounts for only about 1% of global exploration spending. In the Fraser Institute’s global survey of mining jurisdictions it ranks near the bottom for investment attractiveness — 75th out of 84. Investors cite regulatory uncertainty, security risks, infrastructure failures and fractious community relations as major deterrents.
If SA is to capture opportunities from the energy transition, this trajectory must change. The central lesson is that community engagement cannot be peripheral. It must be woven into the business model of mining. This means three things.
First, companies must move beyond compliance. SA’s Mineral and Petroleum Resources Development Act of 2002 introduced Social and Labour Plans (SLPs) as a means of addressing historical inequality. In theory, these link mining projects to local development priorities. In practice, they have often been box-ticking exercises. Aligning SLPs with municipal Integrated Development Plans and the government’s District Development Model is essential. But alignment should not mean outsourcing responsibility to underfunded municipalities. Mining companies cannot substitute for the state, but they can ensure their commitments are transparent, measurable and credible.
Second, companies need to adopt global best practice in community engagement. Inconsistent approaches have bred mistrust. A more standardised framework for consultation, benefit-sharing and grievance mechanisms would help build predictability and trust. This is especially critical as competition for land intensifies and communities face greater environmental and health risks from extraction.
Third, partnerships must be leveraged more effectively. Mining is capital-intensive. Infrastructure such as water systems, roads and energy grids benefits both industry and local communities. Collaborative projects can deliver shared value. Yet these must be seen not as acts of charity but as investments in stability and legitimacy.
The stakes are high. Without a stronger social licence, SA risks squandering its comparative advantage in critical minerals. Investors will look elsewhere. Illegal mining and social unrest will grow. The state will face rising fiscal and security costs.
But with a credible strategy, the opposite is possible. Mining could help finance infrastructure, create durable jobs and provide a platform for industrialisation linked to the energy transition. SA could position itself not merely as a supplier of raw materials but as a leader in responsible mining and mineral processing.
To conclude, a global demand shock for clean energy minerals is coming. SA cannot alter the geology beneath its soil. But it can choose how to manage the politics above it. Community trust, once dismissed as peripheral, is now central. Investment in communities is investment in the future of mining itself.
•Mabasa is an executive manager in the office of the deputy mineral & petroleum resources minister, and a co-chair of the Brics Youth Council.
