South Africa must capitalize on its vast critical mineral resources—valued at over $2.5 trillion—to drive economic growth and industrial development, Mintek CEO Dr. Molefi Motuku emphasized at the Investing in African Mining Indaba.
Presenting a report on the country’s potential in the critical minerals sector, Motuku highlighted that South Africa holds an 88% share of the world’s platinum-group metals market, 80% of global manganese supply, and significant shares in chromium and vermiculite.
“South Africa is uniquely positioned to benefit from the global energy transition, but we must act strategically to develop the necessary infrastructure and downstream industries,” he stated.
However, the report also revealed a sharp decline in mineral exploration investment, dropping from R6.2 billion in 2008 to just R1.2 billion in 2023.
This decline has reduced South Africa’s share of the global exploration budget from over 5% to below 1%, underscoring the urgent need for policy interventions and investment incentives.
Minerals Council South Africa CEO Mzila Mthenjane called for stronger collaboration between government, industry, and communities to ensure that mining benefits are shared equitably.
“We need to work together to develop a sustainable and responsible mining sector,” he stressed.
Manganese Metal Company executive chairperson Bernard Swanepoel echoed this sentiment, emphasizing that developing downstream industries is essential to maximizing the value of South Africa’s mineral wealth and creating long-term economic opportunities.
Meanwhile, Mineral and Petroleum Resources Minister Gwede Mantashe reaffirmed the government’s commitment to streamlining regulations and attracting both local and international investors.
“We are working to create a more conducive investment environment,” Mantashe stated.
With the global demand for green energy technologies rising, the strategic development of South Africa’s mining sector could position the country as a key player in the global energy transition.
