There are good reasons why the South African mining industry should not be too big, Dutch disease being one of them, but mining at only 4% to this country’s gross domestic product (GDP) – which is the case at present – is a lost economic opportunity second to none.

Worst of all is that the cause of mining’s demise was policy and policy again, which has resulted in the missed opportunity of many more jobs, more taxes, more exports and a general all-round benefit for the people of South Africa.

That is the finding of an intensive study by Eunomix CEO Claude Baissac, covering the past 20 years. It shows that South African mining companies have grossly underperformed their competitors in other mining jurisdictions – because of policy.

Every major change in policy over two decades reduced the performance of the industry all along the economic value chain, from investment to returns, job creation, production and socioeconomic development.

This is a huge opportunity loss in a country that needs every bit of economic turn it can muster. South Africa has sat back and watched Canada, Australia, Chile and even Peru take advantage of new market opportunities.

While there are now encouraging signs of a policy turnaround, Baissac’s call for truthful and frank conversations from here on should be heeded in the interest of all the people of South Africa.

It is not that mining should be allowed to dominate the economy, which would overstrengthen the rand when commodity prices rise, but contributing 8%, 10%, 15% or even 20% to GDP would not have negative repercussions.

At a time when President Cyril Ramaphosa is going all out to attract investment of $100-billion in the next ten years, it is good that South African mining is able to put a better foot forward.

Hopefully, mining will benefit from the important foreign and local investment conference scheduled to take place from October 25 to October 27 – foreign exploration investment and mining investment can at last be given a look-in again.

South Africa has always relied on foreign investment for the development of mining, which developed the country. There are insufficient savings locally to provide the investment needed.

It is pleasing, too, that the upcoming Investing in African Mining Indaba will also be opening its doors wide to investment in South Africa.

For a long time, South Africa has been off the investor list at the Mining Indaba, even though it takes place in South Africa. On occasion, South African Mineral Resource Ministers would stand up and tell the world that South Africa was a good mining investment destination, but the due diligence of investors proved that not to be the case.

What government has overlooked, to the detriment of the economy, is that mining is a driver of so many linkages and should be dealt with holistically across many Ministries to maximise the returns for the South African people.