Mantashe: South Africa’s Mining Sector Shows Resilience Amid Global Challenges

Mining Sector Shows Positive Momentum Despite Global Headwinds

South Africa’s mining industry is proving its resilience. Speaking at the Joburg Mining Indaba at the Inanda Club in Sandton, Mineral and Petroleum Resources Minister Gwede Mantashe highlighted that the sector continues to contribute significantly to the economy, even as global market shifts and geopolitical tensions create headwinds.

“Our mining output grew by 3.7% in the second quarter, adding 0.2 percentage points to GDP. Employment in the sector also rose by 0.7%, sustaining thousands of livelihoods,” Mantashe said.

The Minister’s remarks underscore the sector’s vital role as a backbone of South Africa’s economy, particularly in supporting jobs and regional development.

Gold, PGMs, and Chromium Lead the Way

Despite being a century-old industry, gold mining remains a critical economic driver. With gold prices hitting record highs, Mantashe emphasized the need to increase exploration and production. The Junior Mining Exploration Fund is set to prioritise gold, reflecting that over 40% of global exploration spending focuses on the precious metal.

“The imminent opening of West Wits Mining’s new underground gold mine signals renewed investor confidence and highlights South Africa’s enduring gold endowment,” Mantashe said.

Platinum group metals (PGMs) and chromium are also performing strongly. The Minister noted that favorable global prices provide an opportunity to strengthen South Africa’s market position and drive beneficiation.

Addressing Infrastructure and Electricity Challenges

While the sector shows promise, challenges persist. High electricity costs and infrastructure bottlenecks, particularly in rail and port logistics, remain significant hurdlesespecially for bulk commodities like manganese and chrome.

To address this, preferential electricity tariffs are being considered to support ferrochrome, manganese, and steel industries, encouraging local value addition and reducing raw mineral exports.

“This approach will attract investment, create jobs, and ensure that minerals are converted into high-value products here in South Africa,” Mantashe said.

Regulatory Reforms and Modernisation of Mineral Rights

The government is advancing reforms to create a more transparent, investor-friendly regulatory environment. Following a 60-day public comment period on the draft Mineral Resources Development (MRD) Bill, Mantashe confirmed that stakeholder feedback is being carefully reviewed.

Additionally, the rollout of a modern mineral rights cadastre system in the Western Cape is enhancing transparency and streamlining applications. Since the last Joburg Indaba, 2,391 new mineral rights applications have been processed, helping secure investment and improve confidence in the sector.

Prioritising Mine Health and Safety

Mantashe also raised concerns over mine safety, noting regressions in gold and PGMs compared to improvements in coal mining. He stressed the importance of collaboration with industry and labour to adopt safer technologies and adhere to strict safety protocols.

“Achieving zero harm will require intensified efforts. We are convening a meeting with the industry to find lasting solutions for mineworker wellbeing,” he said.

A Vision for Inclusive and Sustainable Mining Growth

The Minister concluded by emphasising that mining must continue to grow inclusively, innovate continuously, and protect the people who turn mineral wealth into economic development.

Social media reaction to Mantashe’s address reflected cautious optimism, with industry stakeholders welcoming clear plans for gold and PGMs, while civil society groups called for stronger action on mine safety and environmental protection.

“Mining can drive jobs, industrialisation, and economic growthbut only if it’s safe, responsible, and inclusive,” commented one Twitter user following the Indaba.

South Africa’s mining sector, with its rich endowment of minerals and a renewed policy focus, is poised to remain a cornerstone of the economy, provided infrastructure, electricity, and safety challenges are addressed.

{Source: South African Government}

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