Peter Major: How SA can attract more investment into mining

South Africa, known for its rich mineral resources and once a leader in the African mining sector, is now facing challenges in attracting investment, according to Peter Major, Director of Mining at Modern Capital Solutions. In a recent interview with CNBC Africa's Fifi Peters, Major expressed concerns about the declining numbers in South Africa's mining industry compared to other African countries such as the Democratic Republic of Congo (DRC), Zambia, and Botswana. While some may argue that South Africa's production value has crossed the 1 trillion rand mark in 2021, Major highlights the need to focus on production numbers, which have been dwindling in recent years. He points out that the country's mining sector has not seen significant new investments, with existing companies mainly focusing on maintenance capital expenditure (CAPEX) instead. Major's analysis raises questions about the government's approach to mining policies and the empowerment of local stakeholders, particularly in the context of Environmental, Social, and Governance (ESG) factors. He suggests alternative funding models where the government could play a more active role in supporting mining projects, rather than burdening private investors with additional financial commitments. Major emphasizes the importance of demonstrating real and positive changes in policies to attract investments, echoing the sentiments shared by African heads of state at the mining indaba. Despite the challenges, Major acknowledges that there are mining countries in Africa like Ghana, the DRC, Zambia, Tanzania, and Botswana that continue to attract significant investment. He attributes their success to investor confidence, favorable legislative environments, and a business-friendly approach to attracting investments. Major's analysis calls for a reevaluation of South Africa's mining policies to create a more conducive environment for investors while ensuring the interests of all stakeholders are met. As South Africa seeks to revitalize its mining sector and regain its position as a mining powerhouse, it must address the underlying issues that hinder investment and promote sustainable growth in the industry.