South Africa has wasted the golden opportunity presented by its rich mineral wealth by constraining the mining sector to the point of stagnation and decline. One government policy, enacted in 2002, is arguably the source of the sector’s decline – the Mineral and Petroleum Resources Development Act (MPRDA). This legislation, by shifting private mineral rights ownership to state custodianship, has played a large role in the mining sector’s decline, with the industry having shrunk by 11.5% since 1994.
Sam Busa