Changing the Rules of Extraction: From Fossil Fuels to “Green” Minerals

Macua Team

February 23, 2026

Context and Objectives

For over a decade, Mining Affected Communities United in Action (MACUA) has stood as a formidable obstacle to what it terms the "toxic alliance" between mining companies and the government in South Africa. Emerging from communities fractured by the social and environmental costs of coal, MACUA, alongside its women's and youth wings (WAMUA and YAMUA), has built a national movement to demand accountability. Their mission is rooted in a simple yet radical proposition: that those who bear the heaviest burdens of extraction should have the primary say in how it happens, and how it ends.

Today, that mission faces its most complex test. As the world pivots away from fossil fuels, South Africa is being repositioned as a vital hub for the minerals that power the green economy. Platinum for hydrogen fuel cells, copper for wind turbines and electric vehicles, manganese for battery technology the country's endowment is vast. The government's Just Energy Transition Investment Plan now stands at R250 billion, and new mines for gold, copper, and rare earths are being opened. President Cyril Ramaphosa has declared mining a "sunrise industry" once more.

But a fundamental question is being ignored: If the rules of extraction remain the same, can the transition ever be just?

Two new case studies from MACUA, examining the operations of Ikwezi Mining in KwaZulu-Natal and Palabora Mining Company (PMC) in Limpopo, offer a stark warning. They expose how the very laws meant to govern mining are being repurposed to underwrite a "green transition" that is repeating the sins of the fossil fuel past. The core message from the ground is undeniable: a transition that keeps the same rules of extraction is not just, it is continuity disguised as change.

Actions Taken

At the heart of the problem lies the Social and Labour Plan (SLP), a legally binding document that mining companies must submit to the Department of Mineral and Petroleum Resources (DMPR) to obtain a mining right. In principle, SLPs are supposed to be a contract: in exchange for the right to extract public resources, companies commit to investing in local economic development, infrastructure, and job creation for the communities they impact.

In practice, as MACUA's audits reveal, SLPs have become instruments of what the organisation terms "Crumbs Capture." This is a system where even the meagre funds promised to communities are systematically looted, misappropriated, or simply disappear, while companies celebrate their compliance in glossy reports.

Across 11 sites nationwide, MACUA's 2024 social audits found that of R376 million committed to community projects, a staggering R284 million (75%) was unaccounted for either missing, undocumented, or falsely reported as delivered. The average completion score for projects was just 23.25%, and the actual value reaching communities was a paltry 21.5%. This is not underperformance; it is a systemic failure of governance.

The case of Palabora Mining Company illustrates how this broken regime is now being applied to the minerals of the future. PMC, one of South Africa's most profitable mining operations, extracts copper, magnetite, and nickel sulphateminerals critical to the green economy. Yet, while its 2021 net profit reached the equivalent of R278 billion, the portion of these profits committed to its SLP represented only an estimated 0.57% of its cumulative projected profits over five years.

Of the four audited PMC projects, only two were fully implemented. A commitment to build four classrooms at Matome Malatji High School resulted in only three being constructed, left in a hazardous condition with broken windows and exposed wiring. The school principal was never consulted. A project to pave a 1km road to a clinic was either not completed or was entirely unverifiable, leaving community members confused and the road impassable.

Ikwezi Mining, a coal company operating in the shadows of a Just Transition away from fossil fuels, demonstrates how the old playbook is being directly carried into the new era. Operating in the coal heartlands of Newcastle and Dannhauser, where unemployment and poverty are rife, Ikwezi's SLP commitments have been marked by vagueness, exclusion, and failed delivery.

A project to support two women entrepreneurs by building a commercial kitchen was so poorly designed that the community was almost entirely unaware of it. After years of delay, a mobile kitchen was finally delivered, but it ran on gas that the women could not afford, and relocation costs rendered it useless. The project did not fail by accident; it failed because it was designed without community input, implemented without transparency, and evaluated without accountability.

Current Status

Perhaps most damningly, 84% of community members surveyed had never even heard of an SLP and had never been consulted by Ikwezi. Women, who made up 67% of the survey respondents, were almost entirely excluded from decision-making, with 82.5% stating they had never been invited to participate in planning. As South Africa prepares to mine copper and platinum under the same legal framework, these womenalready marginalisedare being prepared for a future of continued exclusion.

The term "Crumbs Capture" is a deliberate reframing of "state capture." It describes a morally bankrupt system where elites fight over the crumbs of development funding while the wealth of vast profits from minerals flows elsewhere. MACUA's research shows that collectively, the 11 audited companies generated an estimated R72.23 billion in profit over five years. Yet only R92.25 million 0.13% of that total was delivered in tangible, verifiable community benefit.

When the DMPR reviews PMC's performance, it expresses satisfaction with the "calibre of community projects" being implemented. This disconnect between the regulator's perception and the community's reality is not just an oversight, it is a feature of a system that relies on company self-reporting, with almost no independent verification. The DMPR's regulatory framework remains unchanged. The MPRDA, which governs mining, lacks enforceable provisions for meaningful consultation, lacks the principle of Free, Prior, and Informed Consent (FPIC), and relies on a reporting system that the Minister's own parliamentary responses confirm is based on annual reports from the companies themselves. Communities have no legal lever to stop a mine, challenge a false report, or claim the infrastructure they were promised.

As the world demands more "green" minerals, the pressure on South Africa to extract will only intensify. The government's critical minerals strategy explicitly aims to move beyond a "pit to port" model, seeking to beneficiate minerals locally for batteries, fuel cells, and renewable energy infrastructure. But this industrial policy is being built on a rotten foundation.

If the governance of extraction does not change, the "green transition" will be a tragedy of continuity. The same communities that were displaced for coal will be displaced for copper. The same women who were excluded from consultations for coal mines will be excluded from decisions about platinum. The same opaque, unaccountable SLPs that failed to deliver schools and roads will be repurposed to promise "green" jobs that never materialize.

MACUA and WAMUA are not opposing the transition; they are fighting to redefine it. Their work is a demand to change the rules, not just the resources. A truly just transition requires mandatory, independent social audits to replace company self-reporting; enforceable community consent (FPIC) embedded in the MPRDA; gender-just frameworks that ensure women are not just consulted, but lead; project-level budget transparency so communities can track every rand; and penalties for non-compliance, including the suspension or cancellation of mining rights.

The minerals under South Africa's soil could power a green revolution. But as the Ikwezi and Palabora case studies show, if we extract them under the same rules, they will only deepen the same inequalities. The choice is stark: we can continue with a transition that benefits a few, or we can fight for one that changes everything. Continuity is not change. And without justice, there is no transition.

Stand with MACUA’s fight for justice in mining-affected communities

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