OtherUnder reviewMedium TermMineral Resources and Energy

Derelict and Ownerless Mines Rehabilitation Fund

Theme: Mining rehabilitation / environment

First raisedFeb 2023Last discussedSept 2023Dormant — not discussed in 12+ months3 meetings on the record ↓

Generate Brief Compare Feasibility Matrix

Assessment

Growth Impact2/5

Feasibility3/5

Responsible: DMRE / DFFE / National Treasury

Feasibility Assessment

Medium. Funding mechanism is contentious—industry opposes retrospective levies. MMDB passage is a prerequisite. Environmental urgency provides political momentum.

Stakeholder Landscape

Who backs this reform, who needs convincing, and which interests or red lines shape political feasibility.

Reviewer

Open review workspace

Backers

1 stakeholders

Negotiation weight

1 conditional actors

Opposition weight

0 opposing actors

Review coverage

0/2

All mapped stance notes are still draft

Provenance warning

Every mapped stakeholder stance for this idea is still draft. The coalition score is directional only until at least the high-influence actors are reviewed.

Coalition Read

79/100Coalition-ready

Anchor: National Union of Mineworkers (NUM). Highest-leverage swing actor: National Treasury.

Political Tractability

—Needs reviewed signals

No reviewed signals · 0% of mapped influence has been reviewed.

Backers1 stakeholder

National Union of Mineworkers (NUM)Operational backerdraftInfluence 7/10

NUM supports the derelict mines rehabilitation fund as it creates jobs in mine closure and addresses community health risks.

Interest: Mining employment security and worker safety; just transition pace that protects coal-dependent community livelihoods; collective bargaining rights in…

Concern: Accelerated coal phase-out without adequate income support, skills retraining, and community economic diversification; renewable energy job quality —…

Engagement path: Just transition fund with dedicated skills retraining and income support; coal community economic diversification plans with government commitments an…

Negotiation Priorities1 stakeholder

National TreasuryCritical swing actordraftInfluence 9/10

Treasury supports mine rehabilitation but insists the fund be structured so mining companies bear costs rather than the fiscus.

Interest: Fiscal consolidation with public debt stabilising below 75% of GDP; structural reforms that improve revenue without expanding contingent liabilities;…

Concern: Unfunded mandates in energy transition (JETP co-financing); Eskom's R400bn+ debt and how restructuring socialises costs; reform proposals that create…

Engagement path: Reforms must be fiscally neutral or revenue-positive over the MTEF window; SOE restructuring must demonstrably reduce contingent liabilities; credible…

Description

South Africa has approximately 6,000 derelict and ownerless mines (DOMs) from the gold and coal eras, posing acid mine drainage, sinkhole, and water pollution risks. The DMRE's DOM Unit faces a rehabilitation backlog requiring an estimated R50 billion. A dedicated fund—capitalised through mining royalty levies, the Mines and Minerals Development Bill, and potential green bond issuance—would address this fiscal liability systematically. Rand Water's AMD pumping operation costs R2 billion annually, a preventable outlay if upstream rehabilitation proceeds. Parliamentary BRRRs flagged the Western Basin AMD threat to Johannesburg's water security repeatedly from 2021 to 2024. International models (US Superfund, Canada's Abandoned Mines programme) inform the fund design.

OECD

Referenced in OECD Economic Surveys: South Africa

OECD SA Survey (2022, 2025). Environmental rehabilitation and resource governance recommended.

Implementation Roadmap

South Africa has approximately 6,000 derelict and ownerless mines generating acid mine drainage (AMD), sinkhole risk, and water pollution — a legacy of 130 years of gold, coal, and base metals mining. The DMRE DOM Unit manages rehabilitation with ~R700 million/year against an estimated R50 billion backlog; Rand Water spends R2 billion/year pumping Western Basin AMD to protect Johannesburg's water supply, a preventable recurring cost. A dedicated Rehabilitation Fund, capitalised through a mining royalties top-up levy, green bond issuance, and international climate finance under the Just Energy Transition framework, would systematically address this liability over 20 years. The Mines and Minerals Development Bill must include strengthened financial provision requirements to prevent the backlog from growing.

Gazette the Derelict and Ownerless Mines Rehabilitation Framework: funding model (annual levy on Minerals Council members of 0.5–1% of royalty payments), governance structure (independent fund board), procurement process for rehabilitation contractors, and 20-year rehabilitation schedule by priority site

Q2 2025DMRE / National Treasury

Establish the DOM Rehabilitation Fund as a Schedule 3B public entity under the PFMA: independent board with environmental engineering, finance, and community representation; dedicated accounting officer and audit committee

Q3 2025–Q1 2026DMRE / National Treasury

Issue the first tranches of DOM Rehabilitation Green Bonds: R5 billion in 5-year bonds under the National Treasury Green Bond Framework (2024), listed on the JSE and accessible to pension funds under Regulation 28 green infrastructure allocation

Parliamentary record

3 meetings

Committee sittings this reform was drawn from, most recent first. Each row opens the meeting on this site; the PMG link goes to the source record.

Status History

tracked since Mar 2026

Recorded as Under review when status tracking began — held since at least Mar 2026.
Mar 2026

Data as of 2026-08-24 · latest PMG meeting 2026-08-21