The objective of the study was to investigate downscaling in South Africa’s mining industry and the manner in which it was managed with special reference to the gold mining sector. In this regard the study involved literature review, data and information gathering, participating in tripartite stakeholder forums and soliciting opinions from several role players in the industry. Driefontein Gold Mine, one of the largest gold mines in the world, was used as a case study to examine management of downscaling in the gold mining industry. Literature investigation showed that South Africa’s mining industry has always been cyclical and labour was vital for its development. A dichotomy was revealed in the study in that the early years of modern mining were besieged with a continuous shortage of labour; in recent years the opposite is true as the industry is continuously battling with downscaling and shedding of jobs. Historical data shows that the gold mining industry has gone through three periods: the Stable Period (Period 1: 1960-1975); Expansion Period (Period 2: 1976-1987); and Downscaling or Crisis Period (Period 3: 1988-2004). Sufficient evidence was presented to show that the downscaling period was triggered by a combination of political instability of the 1980s and economic factors such as declining gold grades and depressed gold prices. Stakeholders followed a three-phased approach to address negative impacts associated with downscaling. The approach involved holding two tripartite summits; Gold Mining Summit (Phase 1) and Mining Summit (Phase 2) and incorporating recommendations emanating from the summits into the legislative process (Phase 3). At mine level, mines such as Driefontein managed downscaling through a number of initiatives including productivity improvement, restructuring and providing redundant employees with the option of taking extended leave. Economic factors, such as gold grades and ore reserves, suggest that downscaling will continue well into the foreseeable future and will exacerbate the existing negative environmental and socio-economic legacies. It is against this background 3 that international experiences on the management of downscaling were investigated. The study concludes by proposing recommendations and a new strategy to manage downscaling in South Africa’s gold mining industry. The strategy proposes a number of measures that need to be put in place at national, local community and mine levels.