\u201cBy 2002, the ANC decided to go for a radical economic change in the mining industry, and I mean radical. I don\u2019t know of a country that did such a radical change.\u201d<\/p>\n\n\n\n
It included changing mineral ownership rights, strict black economic empowerment (BEE) requirements, and BEE procurement policies.<\/p>\n\n\n\n
- \n
- The Mineral and Petroleum Resource Development Act (MPRDA) transferred mineral ownership from the private companies that owned the mines to the state.<\/li>\n<\/ul>\n\n\n\n
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- BEE policies forced mining companies to give 26% of their equity to previously disadvantaged individuals.<\/li>\n<\/ul>\n\n\n\n
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- BEE procurement policies forced mining companies to source most of their goods and services from B-BBEE entities.<\/li>\n<\/ul>\n\n\n\n
These radical changes, contained in a leaked document, caused the South African equity market to plummet. The JSE mining sector fell by 30%.<\/p>\n\n\n\n
\u201cThat showed what the world thought of the changes, but the ANC went ahead with them anyway,\u201d he said.<\/p>\n\n\n\n
When these radical changes became policy in 2004, the South African mining sector plummeted by another 20%.<\/p>\n\n\n\n
Major slated the government\u2019s decision to implement these changes despite warnings from the industry and the dire consequences for South Africa.<\/p>\n\n\n\n
He explained that the policy changes have harmed the South African mining industry more than any other Act or person.<\/p>\n\n\n\n
Major ascribed these policies as a result of the ANC\u2019s \u201cenormous amounts of ignorance, arrogance, and greed\u201d<\/p>\n\n\n\n
Zambia’s mining example<\/h2>\n\n\n\n
South Africa\u2019s damaging policies are not unique. Major said Zambia also implemented poor policies, which destroyed its mining industry.<\/p>\n\n\n\n
By the end of the 1960s, Zambia was one of the world\u2019s largest copper producers, producing 709,000 metric tonnes of copper by 1969.<\/p>\n\n\n\n
Until then, Zambian mines were privately owned by private companies like the mining giant Anglo American.<\/p>\n\n\n\n
In 1969, Zambia started implementing policies to nationalise mines. By 1974, the country achieved full nationalisation of mines.<\/p>\n\n\n\n
This required that the government own 51% of mines within Zambia. These policies remained in place into the nineties.<\/p>\n\n\n\n
While these ownership policies were in place, Zambia experienced a significant decline in its mining production. It continued to produce less each year.<\/p>\n\n\n\n
Zambia\u2019s copper production saw a significant decline, and by 2000, the once-significant copper producer produced only 260,000 metric tonnes of copper.<\/p>\n\n\n\n
However, between 1997 and 2001, under President Frederick Chiluba, major privatisation occurred in the Zambian mining sector, ending the nationalisation policies.<\/p>\n\n\n\n
The destructive nationalisation of mines policies was discarded, and the road was paved for the private sector to rebuild the damage caused by the government.<\/p>\n\n\n\n
Since 2001, Zambia\u2019s mining industry has been revived. The sector experienced a return to its former glory before the government ruined it.<\/p>\n\n\n\n
Major explained that Zambia has received tens of billions of dollars in foreign investment since making these positive policy changes.<\/p>\n\n\n\n
Within 9 years, Zambia was back to producing 700,000 tonnes of copper per year, and its unemployment rate fell from around 20% to its current level of 6%.<\/p>\n\n\n\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/05\/1-1-1024x706.jpg\")
<\/a><\/figure>\n\n\n\nDemocratic Republic of the Congo’s mining industry<\/h2>\n\n\n\n
The Democratic Republic of Congo (DRC) experienced a similar trend to Zambia when mines were nationalised in the 1970s.<\/p>\n\n\n\n
After the DRC implemented nationalisation policies, its mining production decreased to the point that the country did not produce any refined copper from 2000 to 2005.<\/p>\n\n\n\n
In the early 2000s, a significant change was introduced where mines were privatised in the Democratic Republic of Congo.<\/p>\n\n\n\n
This allowed significant foreign investment to enter the country, with large players such as Glencore investing heavily in it.<\/p>\n\n\n\n
- BEE procurement policies forced mining companies to source most of their goods and services from B-BBEE entities.<\/li>\n<\/ul>\n\n\n\n
- BEE policies forced mining companies to give 26% of their equity to previously disadvantaged individuals.<\/li>\n<\/ul>\n\n\n\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/05\/2.jpg\")
<\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"