The mining industry is in a recession. This industry we so love is on its knees and requires urgent resuscitation. But how did we get here? Why have things deteriorated to this extent? The industry has entered a technical recession following a contraction in the first quarter of 2025.

Last month, the Department of Mineral and Petroleum Resources (DMPR) announced the launch of the Mineral Resources Development Bill (MRDB) and the Critical Minerals Strategy in an attempt to reinvigorate the industry. While there will naturally be scepticism about any move by the DMPR, given its track record when it comes to supporting the industry, the optimists among us are forever hopeful that one day they will get it right.

However, even the most optimistic participants in the mining industry are finding it difficult to remain hopeful at this point. Following two consecutive quarters of declining production, the sector has officially entered a recession. This downturn comes as little surprise, given that once-enthusiastic investors have gradually shifted their focus — and capital — to more promising opportunities in other countries.

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At some point, the mining industry accounted for more than 300 listings on the Johannesburg Stock Exchange. But in recent times we have seen that number dramatically dwindling to a shocking less than 40 mining companies. This delisting and exodus of mining investment out of South Africa has been led by heavyweights such as Anglo American and AngloGold Ashanti, which is a demonstration of the fact that something is significantly wrong with the operating environment we have created for the industry.

However, the optimists among us keep hoping. We have no choice because we love this industry. At one point, it was widely regarded as highly attractive, with markets buoyed by its potential and promise as a catalyst for meaningful economic growth.

We hope, maybe against hope, that things will turn around eventually. But one cannot escape the feeling that time is fast running out. Soon, we will not have a recognisable mining industry to talk of. Both the MRDB and the Critical Minerals Strategy come at a pivotal time to realise the potential for South Africa’s mining industry and its contribution to economic growth and the energy transition. They are critical for the growth and sustainability of the mining industry, which encourages investment in exploration, the development of new mines and the long-term sustainability and expansion of mining operations.

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We always encourage official steps aimed at ensuring policy and regulatory certainty and enhancing investor confidence, mindful of the fact that a stable legal framework is essential to attract and retain investments, foster inclusive economic growth, and sustainable resource development. The goal must always be to align mining legislation with evolving policies, economic conditions and global shifts while ensuring that it reflects current industry needs and government priorities.

Since the early 2000s, we have had different iterations of mining charters and industry policy changes. One hopes that one day we will get this right so that mining’s full potential can finally be realised.