Book Description

Multiple crises of sustainability on economic, social, environmental and governance fronts have crippled the world's current development path. The transition to a green growth model, stemming from the concept of sustainable development, has been recognised as a ground-breaking way forward, combining economic development, social welfare and environmental protection. Such a transition has massive implications for all economic activities and socio-economic development strategies. This manifold challenge is particularly pronounced in the mining sector, around the opportunity to turn the industry into an agent of change and solution providers, rather than a generator of unsustainable lock-ins and a resisting force. An energy prism of analysis provides a vital insight into the nexus and a practical entry point. A traditional illustration of this historical dichotomy between mining and sustainable development can be found in South Africa. Mining value chains play a significant role in the South African economy. Beyond their direct contribution, mining activities largely drive the country's development through their integration with energy and transport infrastructure (as part of a Minerals-Energy Complex) and their multiple linkages with the rest of the economy. The is particularly the case of the platinum value chain, as a result of South Africa holding more than 95% of global reserves. Largely unconnected to the internal dynamics shaping the South African mining value chains, a green economy agenda has emerged in the country over the last two decades. Focused on the creation of green jobs, South Africa's emerging framework for a green economy is developing rapidly. It remains however impacted by a series of policy and institutional challenges, hampering its implementation and a smooth transition. This finds particular expression in the South African mining value chains, essentially due to their reliance on coal-based electricity supply. It constitutes a core factor of vulnerability with regards to climate change response measures. Endogenous factors, such as increased cost pressures and falling prices, moreover weaken the ability of South Africa's mining value chains to cope with new conditions. This is specifically apparent in the platinum sector. In addition, the ability of the South African mining sector to shift to a development path compatible with a green economy appears to heavily hinge on the transformation of the country's energy supply industry, leaving mining houses little room to manoeuvre. Acknowledging this situation, the South African government has provided some support for the transition and companies have made efforts to reduce their energy and carbon footprint. These initiatives however appear insufficient, particularly in light of the economic benefits associated with the mitigation opportunities existing at the firm level. In the long run, the global transition to a green economy may moreover represent an opportunity for numerous South African mining value chains, as new, innovative green products require substantial amounts of minerals and metals. Fuel cells, as part of the platinum value chain, are a striking illustration of this potential.