South Africa’s mining industry is on the rise despite the challenging global economic environment, Mineral and Petroleum Resources Minister Gwede Mantashe told parliament during his departmental budget vote.
Mantashe said in his written remarks that Mintek, the country’s national mineral research organisation, had completed a study on the state of mining and the country’s Critical Minerals and Metals Strategy.
“Having produced individual commodity reports on 21 minerals, the critical minerals strategy shows that minerals, such as platinum, manganese, iron ore, coal and chrome ore, are poised to play a critical role in the South African mining industry and the economy for the foreseeable future,” Mantashe said.
“In contrast to the sceptical view that the South African mining industry is a sunset industry, with the comprehensive and up-to-date insights into key developments within global commodity markets, mineral production trends in South Africa and the mining sector’s contribution to the economy, we are now more convinced than ever that the South African mining industry is a sunrise industry.
“This mining frontier is filled with exciting opportunities for investors and the economy,” he said.
Mantashe acknowledged that the industry was operating in a challenging global landscape.
Despite these challenges, including escalating trade tensions, evolving geopolitical relationships and the United States of America’s imposition of tariffs on some mineral exports, the industry remains a strong contributor to the national Gross Domestic Product (GDP).
“Despite the challenging global environment, mining gross value-added rebounded by 0.3% in 2024, from a 0.5% decline in 2023. Effectively, in rand terms, 2024 saw the mining sector contributing R451 billion to the country’s GDP, thus sustaining the 6% total contribution to the GDP.
“In the same period, the mining industry’s export earnings totalled R674bn, comprising R586.4bn from primary minerals and R87.5bn from processed minerals, representing a decrease of 0.6% from R678bn in 2023,” the minister said.
Mantashe added that the future of mining depended on new mineral discoveries, making the Junior Mining Exploration Fund critical for discovery and transformation.
“Established through a R200-million allocation from National Treasury, matched by the Industrial Development Corporation (IDC), this fund is poised to unlock new mineral discoveries and drive transformation. The first funding call has already resulted in the signing of legal contracts with black-owned junior miners,” he said.
“As the country navigates the natural decline of legacy commodities like gold, this fund will enable the discovery of new minerals essential for a range of industries, from advanced manufacturing to technology and infrastructure development.
“Expanding this fund is not just an investment in new mining frontiers but a commitment to ensuring that our mineral wealth contributes to a more inclusive and transformed industry.”
He said the Council for Geoscience had implemented its Integrated and Multi-Disciplinary Mapping Programme to expand its onshore mapping coverage to meet the needs of the exploration community.
“For the 2025/26 financial year, the CGS will continue with the implementation of this backbone programme, both onshore and offshore, to make available key pre-competitive geological data, information and knowledge for considered investment in minerals exploration,” Mantashe said.
His department’s budget allocation for the 2025/26 financial year is R2.86bn, of which R1.16bn will be transferred to public entities, municipalities, and other implementing institutions to “enable them to fulfil their constitutional mandates”.
Specific projects to receive funding include:
- R134.7m for the rehabilitation of derelict and ownerless mines implemented by Mintek.
- R22.4m m for the Mine Rehabilitation Research Project implemented by the Council for Geoscience.
- R32.3m allocated to the CGS for the Mine Water Ingress Project.
- R46.1m allocated to the Petroleum Agency South Africa for the implementation of the Shale Gas Project.
