The South African mining industry’s real GDP in 2016 was 2.6% smaller than its GDP recorded in 1994. The financial services industry, on the other hand, has grown by 168% in the same period. Is this contrast due to mining’s lack of potential or due to regulatory disincentives?

The Chamber recently conducted a survey among its members seeking to assess the answer to this question by asking what impact a better regulatory environment would have on investment plans. The results are enlightening. The Fraser Institute Investment Attractiveness Index has little doubt about the answer. It ranks South Africa in the top quartile for its mineral potential.

Yet, in assessing South Africa in the context of best practice policy, legislation, regulation and operating environment, South Africa continues to rank lower relative to other mining jurisdictions. Clearly there is a fundamental mismatch between the potential and the current outcomes.

Report by the Chamber of Mines