Jul 03, 2025 (SAnews.gov.za/All Africa Global Media via COMTEX) --
Despite the challenging global environment, South Africa's mining industry is an industry on the rise.
This view was shared by Mineral and Petroleum Resources Minister Gwede Mantashe, who delivered the department's Budget Vote in Parliament on Wednesday afternoon.
In his written remarks, Mantashe explained that Mintek - the country's national mineral research organisation - has completed a study on the state of mining in the country and the Critical Minerals and Metals Strategy for implementation, which shows great potential in the industry.
"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.
"In contrast to the sceptic 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 is 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 R674 billion, comprising R586.4 billion from primary minerals and R87.5 billion from processed minerals, representing a decrease of 0.6% from R678 billion in 2023," the Minister said.
Expanding mineral exploration
The Minister highlighted that the sustainability and future of mining in South Africa is dependent 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.
"As the country navigates the natural decline of legacy commodities like gold, this fund will enable the discovery of new minerals that are 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 insisted.
Mantashe noted that, for its part, the Council for Geoscience (CGS) has implemented its Integrated and Multi-Disciplinary Mapping Programme to expand its onshore mapping coverage to meet the needs of the exploration community.
"This work provides the fundamental basis to outline the mineral potential and geological systems at an enhanced scale, allowing [for] greater clarity to focus on exploration initiatives.
"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," he said.
The budget
The department's budget allocation for the 2025/26 financial year is R2.86 billion, of which R1.16 billion will be transferred to public entities, municipalities, and other implementing institutions to "enable them to fulfil their constitutional mandates".
Some specific projects to receive funding include:
R134.7 million for the rehabilitation of derelict and ownerless mines implemented by Mintek.R22.4 million for the Mine Rehabilitation Research Project implemented by the Council for Geoscience.R32.3 million allocated to the CGS for the Mine Water Ingress Project.R46.1 million allocated to the Petroleum Agency South Africa (PASA) for the implementation of the Shale Gas Project.
COMTEX_466889065/2029/2025-07-03T12:12:31
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