Minerals Boom Promises Benefits, But Communities Fear Being Left Behind

South Africa is strategically positioning itself as a powerhouse in the critical minerals sector, a move lauded as central to the global energy transition and the advancement of technologies like electric vehicles and artificial intelligence. The government's approval of a critical minerals and metals strategy signals a clear intent to leverage these resources for national economic development and to anchor the country within global value chains. With 21 minerals identified as critical, including platinum, manganese, and iron ore, the ambition is palpable.

“

The familiar ‘resource curse’ pattern — exporting raw minerals without local processing — limits job creation and deepens inequality, allowing elites to benefit while local labour is exploited.

However, beneath the surface of this ambitious strategy lies a deep-seated concern: the potential for the benefits of this minerals boom to bypass the very communities living closest to the extraction sites. This is not a new fear; it echoes the familiar 'resource curse' narrative that has plagued many resource-rich nations. The Centre for Environmental Rights (CER) and other stakeholders are sounding the alarm, warning that without careful planning and genuine community engagement, the cycle of exploitation and inequality could repeat itself.

The strategy itself outlines priorities such as exploration, beneficiation, and investment attraction, proposing special economic zones and tax incentives. Yet, the CER points to a persistent implementation crisis regarding social and labour plans. Many mining-affected communities fear displacement, land disputes, and inadequate compensation. The core issue remains: the export of raw minerals without sufficient local processing limits job creation and exacerbates inequality, allowing elites to profit while local labor bears the brunt.

“

We sit with an implementation crisis of our social and labour plans in the country. How will then these promised benefits be tangible for communities?

Tarisai Mugunyani of the CER rightly cautions that critical mineral mining is, in essence, still mining, and the challenges faced in implementing existing frameworks must be addressed. If South Africa cannot ensure tangible benefits reach these communities now, the promises of the critical minerals strategy will ring hollow. Placing mining-affected communities at the center of this conversation is not just a matter of social justice; it is crucial for the sustainable and equitable development that the nation desperately needs.

“

We believe that as we speak around mining, mining benefits and how mining is centred as the bedrock of South Africa’s economy, we will do a disservice to any conversation if we do not put mining-affected communities at the centre.