Mining has long been the backbone of South Africa’s economy. Today, it also stands at the heart of the country’s energy future. The sector’s heavy reliance on electricity, its carbon footprint, and its control of transition-critical minerals such as manganese, PGMs, and vanadium mean that mining will either anchor or derail South Africa’s just energy transition (JET).
Yet momentum in renewable adoption and JET funding is colliding with one clear challenge: our legal and governance frameworks are not yet ready to deliver a transition that is both sustainable and just.
Renewable Uptake and Judicial Oversight
Recent reforms and Operation Vulindlela have enabled more than 130 private generation projects in the mining industry, accounting for nearly 70% of all new offtake agreements. These projects could deliver almost 15,800 MW of capacity, from Seriti’s wind projects to Sibanye-Stillwater’s solar expansions.
But the courts are making their mark too. In Green Connection NPC v Minister of the DFFE, the Western Cape High Court overturned TotalEnergies’ exploration authorisation, citing regulators’ failure to account for climate risks. The decision signals a future where environmental approvals will face strict judicial scrutiny, making box-ticking approaches untenable.
Legal and Governance Gaps
Despite progress, the regulatory environment remains fragmented:
- Permitting delays: Environmental, water, and generation licences are processed in silos, stalling renewable rollouts.
- Community equity: Transition funds have yet to transform coal belt towns such as Komati, where unemployment remains above 40% post-closure. Social and Labour Plans are still not geared toward reskilling or retraining.
- Finance accountability: Global criticism of ESG compliance failures in “transition mineral” mining highlights the need for statutory ESG due diligence in South Africa, not just voluntary standards.
Without legislative reform, private sector ambition will continue to outpace state capacity.
Beneficiation and the Power Challenge
The Draft Mineral and Petroleum Resources Development Amendment Bill, 2025 renews emphasis on domestic beneficiation. While the policy aims to maximise value from South Africa’s minerals, its energy implications are profound.
Beneficiation is energy-intensive, smelting, refining, and advanced processing all require stable, large-scale power. Unless the state can resolve licensing bottlenecks and guarantee low-carbon electricity at scale, beneficiation goals risk becoming politically aspirational but practically unattainable.
Risks on the Horizon
The gap between policy ambition and governance capacity creates three key risks for South Africa:
- Stranded communities: Coal-dependent towns could be left behind without meaningful jobs or retraining programmes.
- Capital flight: Investors will retreat if ESG oversight remains voluntary and carbon-heavy operations lose financing.
- Gridlock in beneficiation: Expanding processing capacity without reliable electricity will worsen supply constraints.
In short, mining could either enable or hinder the transition; the difference lies in how quickly South Africa strengthens its legal framework and implements reform.
A Way Forward
South Africa has the mineral wealth, private capital, and renewable potential to succeed. What it lacks is regulatory alignment and enforcement certainty. Mining companies need clear permitting processes, binding ESG requirements, and governance systems that create accountability and community benefit.
Until then, optimism about the just energy transition must be balanced with realism: our institutions remain underprepared, and the legal architecture is incomplete.
How Bishop Fraser Attorneys Supports Clients
At Bishop Fraser Attorneys, we help mining and energy companies navigate this uncertain legal landscape. From environmental authorisations and permitting to ESG compliance and governance frameworks, we provide strategic legal guidance that protects projects, communities, and investments.
The just energy transition will reshape South Africa’s economy. For mining to anchor this shift, legal reforms must catch up with private ambition, and businesses must be ready.