Contrary to popular belief, South Africa’s mining sector is not in decline but rather evolving and expanding. This is according to Gwede Mantashe, Minister of Mineral and Petroleum Resources, who emphasised that the decline in gold mining was often misinterpreted as a broader downturn in the sector – an inaccurate narrative that needs to be corrected. “Mining is not declining. In 2024, we conducted a comprehensive study on the state of mining in South Africa alongside the formulation of the country’s critical minerals strategy. Spearheaded by Mintek and supported by the industry, the study confirmed that South Africa – and, by extension, Africa – boasts an exceptional mineral endowment, positioning it as prime real estate for mining investment,” he said.Mantashe highlighted that the sector was not only on a growth trajectory but was also diversifying beyond gold into a broader range of mineral resources. Mining remains the backbone of the economy and continues to attract significant investment.“While gold mining has declined due to the complexities and costs of extracting deposits at depths exceeding four kilometres, South Africa still produced 96 tonnes of gold in 2023. This secured its position as the world’s 13th-largest and Africa’s fourth-largest gold producer. Furthermore, the sector employed over 90 000 people, making it the country’s third-largest mining employer after coal and platinum group metals (PGMs),” Mantashe said.In 2021, South Africa’s PGM production reached its highest level in the past decade at 285 tonnes. Notwithstanding the decline in the PGM basket price, in 2023, South Africa was the world’s largest producer of PGMs, accounting for 73% of global new mine supply of platinum, 38% of palladium and 81% of rhodium supply to global commodity markets.Mantashe said there was a strong case emerging out of the government’s study that the PGM sector would play a catalytic role in sustaining the mining industry for many generations to come.“Furthermore, there is evidence that the African continent hosts significant reserves of industrially important minerals such as manganese, copper, coal, nickel, cobalt, titanium, vanadium, lithium and rare earth minerals.”Mantashe said with the growing demand for these minerals, Africa needed to assert its advantage and take charge of the growing demand. “We cannot continue to debate these minerals based on the dictates of some developed nations as if we have no aspirations to accelerate Africa’s industrialisation and close the development deficit. There is no other point in time that will be more opportune for Africa to take control of its development while still pursuing our strategic partnerships with the rest of the world. We must, therefore, avoid the race to the bottom.”According to Mantashe, mining holds the potential to change Africa’s fate. “The continent is the world’s richest mining jurisdiction, possessing at least 90% of the world’s chromium and platinum, 40% of the world’s gold, and the largest reserves of the world’s cobalt, vanadium, manganese and uranium.” LV
