South Africa has been urged to benchmark from countries like Zambia to attract investment and miners.
Peter Major, Cadiz Corporate Solutions speaking recently at the Hogan Lovells Africa Forum recently called for mining policy change.
“South African mining has gone from having the most advanced, efficient mines on the planet to the most destroyed industry,” said Major.
He added that, although it was difficult to determine which “blueprint” the Department of Mineral Resources (DMR) was using to regulate and govern the local mineral endowment, the industry absolutely and definitively needed a completely new blueprint to slow the rapid decay of industry and decreasing investor confidence.
Major said the increasing risk of investing in South African mining projects (especially exploration and junior projects) was, moreover, induced by policy uncertainty – rules and regulations imposed by the DMR.
“The Democratic Republic of Congo destroyed its mining industry, but it was subsequently resurrected. “How? Through policy change!” Major emphasised.
Zambia’s mining industry was also resurrected through a change in mining policy, while Chile instituted two policy changes that transformed its mining sector to high investability status, attractive for explorers, investors and miners in general, he elaborated.
“Policy change is all South Africa requires, otherwise the industry is doomed. The right policies attract investment,” said Major.