By the Webber Wentzel Mining Team
As rapid evolution and change remains the only constant in mining, Mineral and Petroleum Resources Minister Gwede Mantashe spoke strongly of the need for African countries to collaborate to maximise the returns from the extractive industry by realising the value of local beneficiation. According to Minister Mantashe, the time has come for South Africa and the continent to ensure fair participation as an integral part of the global mining industry by looking inward and leveraging its youth, and innovation as resources at their disposal.
South Africa and its African neighbours are sitting on what Mineral and Petroleum Resources Minister Gwede Mantashe has described as the “right real estate with an exceptional mining endowment”, citing a study conducted by the government and Mintek. The Minister made the comments in his opening address at the 2025 African Mining Indaba in Cape Town on Monday, 3 February 2025.
Recognising that South Africa’s gold production is in decline, the Minister highlighted its potential of PGM production as significant, accounting for 73% of the global supply of platinum, 38% of palladium and 81% of rhodium. The PGM sector also employed over 100,000 people, a key pillar in South Africa’s economic story as the mining sector evolved with the times. Against this background, Minister Mantashe emphasised the need for investment and spoke to South Africa's willingness to work alongside investors to ensure more expeditious licensing and processing of applications, referring to the ongoing work the department has been doing to modernise the current systems. Although not a new topic and devoid of specific detail, the overtones and appeals to investors do perhaps indicate a positive change in sentiment and a willingness to understand the needs of investors.
The Minister also highlighted Africa's growing demand for minerals and its substantial reserves of key resources such as manganese, copper, nickel, cobalt, lithium, and other rare earth elements, emphasising that the future of critical minerals should be shaped by and for Africa.
The concept of critical minerals, which according to Minister Mantashe includes "clean" coal, should be defined not only as what the developed world needs and thinks is important but should also take into account the economic dependence of the source countries on mining and certain minerals. This was underscored and supported by the Minister's acknowledgement of the local and host communities as stakeholders in his speech by acknowledging the presence of traditional leaders in the room but also indicating the need to rely on "indigenous wisdom". In considering critical minerals, it is laudable to bring along host communities as an important stakeholder in the just transition framework, but this should be balanced with the needs of a business to – as the Minister put it – "make money".
Interestingly, amidst discussions on critical minerals, Minister Mantashe emphasised the resurgence of coal as an essential component of South Africa's mineral strategy. Declaring that "king coal is back," he argued for considering coal as a critical mineral due to its significant role in employment and economic contribution. This perspective challenges the prevailing narrative that coal's era was prematurely declared over, particularly given global climate commitments and South Africa's environmental, social, and governance (ESG) targets.
The Minister’s comments invite further scrutiny on how coal will fit into South Africa's future energy and economic plans, especially concerning its inclusion in initiatives such as the Junior Mining Exploration Fund. Currently, the fund prioritises minerals like copper, nickel, graphite, lithium, and rare earth elements, which are pivotal for the energy transition. It remains to be seen whether coal, a conventional resource, will be adapted to this strategy, balancing economic realities with sustainability goals. This development will be crucial to monitor as South Africa navigates its mining trajectory and shifts in global energy policies.
To this end, the Minister clearly put his position forward that the concept of “critical minerals lack consensus on the definition and categorisation” and is currently driven by the interests of a select group of nations. It is only by working together that African countries can interrogate, exploit and drive greater regional and intra-continental cooperation.
The Minister sought to strike a balance in his address between the mining industry as a job creator and the commercial imperatives that keep the industry afloat, and investors engaged. Highlighting the mining industry’s beneficiation responsibilities, the Minister sought to encourage investors to participate in South Africa’s mining industry, with the government taking active measures to lower the cost of doing business, reducing administered prices and providing a consistent and reliable energy supply.
The crucial part of implementing this broader vision still requires details and timelines to ensure a thriving investment environment and the industry looks forward to the legislative, regulatory and administrative progress that underscores these policy positions.
The Minister recognised and thanked stakeholders for the achievement of the lowest recorded number of fatalities in 2024. Although a missed opportunity to give insight into the status of the long-awaited Mine Health and Safety Amendment Bill given the material changes that this may bring for mine owners, particularly in the event of contravention of safety obligations. Similarly, the Minister did not mention the increasing role played by mine owners in the fight against gender-based violence and the move in the industry towards legislated public-private partnerships in seeking solutions to social ills and providing support to victims and survivors of gender-based violence. The positive impact that mining companies can, and do, play in communities to support social projects and the role of the state in this regard cannot be understated.
The Minister's stance on illegal mining was clear – a zero-tolerance policy. While understandable as a policy position, it does pose a risk in being able to combat illegal mining using the existing legislative framework and the power of the department under the MHSA to deal with unsafe mining. This would allow the Minister to play a greater role in dealing with the broader implications of existing mining for industry and stakeholders alike.
Towards the end of his address, the Minister highlighted South Africa’s role as leader of the G20 in 2025, which the country can leverage “to shape a new era of the African mining industry that meaningfully contributes to the socioeconomic development of our continent.”
