Revitalising South Africa’s mining industry is crucial not only for rejuvenating the domestic economy but also for strengthening the country’s geopolitical standing amid global economic turbulence, industry leaders have emphasised.
With mineral reserves valued at over $2.5 trillion, including 16 commodities ranked in the global top 10, South Africa holds immense untapped potential, according to data from the Department of Mineral and Petroleum Resources and the US Geological Survey. However, industry experts warn that failure to reinvigorate mining and exploration efforts risks wasting these vast opportunities.
Despite facing declining commodity prices and strained export infrastructure, South Africa’s mining sector still recorded an impressive turnover of R1 trillion last year. This included a diverse mix of precious metals, bulk commodities, and industrial minerals that underpin critical industries and broader social development, noted the International Council on Mining and Metals (ICMM).
Mining also has extensive economic ripple effects across sectors such as construction, transport, finance, manufacturing, and agriculture. Yet growth remains stunted due to limited greenfield exploration and challenges in infrastructure and policy.
“Mining is the uncontested catalyst of South Africa’s economy,” said Minerals Council South Africa CEO Mzila Mthenjane during the 2025 Investing in African Mining Indaba. He stressed the importance of rebuilding the mining cadastre to attract investment and stimulate new projects, especially in exploration.
The sector is supported by over a century of expertise in extraction, processing, and value addition. However, this advantage is undermined by high energy costs and logistical bottlenecks. Eskom’s soaring power tariffs – up 500% in the last decade – have contributed to the decline in ferrochrome and ferromanganese output, with corresponding job losses.
Efforts are underway to resolve logistical issues, including proposed private-sector involvement in rail improvements, spearheaded by Transport Minister Barbara Creecy in collaboration with the Treasury. Meanwhile, self-generation of electricity by mining firms is helping cushion the impact of energy price hikes.
There is also a pressing call to capitalise on high global gold prices by ramping up gold production. Adding value to domestic chrome and manganese resources is also being promoted as a route to job creation and economic upliftment.
Government backing is deemed vital to the sector’s future. Industry stakeholders are urging that the forthcoming Mineral and Petroleum Resources Development Act (MPRDA) Amendment Bill foster investor confidence and allow for faster mining growth. The Bill is expected to update the legislative framework to reflect the sector’s evolution beyond mere compliance.
Empowerment within the sector has also seen significant progress. Recent figures show that mining companies achieved an average 39% empowerment shareholding—well above both the 2010 Mining Charter’s 26% and the latest 30% target. This shareholding is broad-based, encompassing communities (9.4%), employees (7.5%), and entrepreneurs (22.3%).
Women now constitute 19% of the full-time mining workforce—about 91,000 of the 480,000 total employees—marking a significant shift from a history of complete exclusion.
In terms of human development, R4.8 billion was spent on training by member companies of the Minerals Council, while total industry investment reached R7 billion. This exceeded the 5% training spend target set out in the Mining Charter.
Moreover, investment in mine community development—primarily through Social and Labour Plans—also surpassed corporate social investment benchmarks from other industries.
The consensus across the sector is clear: South Africa can no longer afford to delay mining reforms. Bold legislative action, infrastructure improvements, and continued empowerment are seen as the keys to unlocking the sector’s full potential for national growth and global relevance.
