South Africa’s mining industry is increasingly diversifying from an era that was associated with gold mining to an industry with a diverse range of mineral resources such as platinum group metals (PGMs), coal, gold, copper, manganese, vanadium, and other natural resources that are considered critical for the just transition.
Gwede Mantashe, South Africa’s Minister of Mines, delivered these remarks at the Africa Down Under Conference in Perth, Australia.
Lost in definitions – and studies
Mantashe announced that South Africa’s “Critical Minerals Strategy,” currently under development, will serve as the nation’s blueprint for the exploration, extraction, and processing of these vital minerals.
“Whereas there is no universal consensus on the definition and categorisation of critical minerals, I can divulge that, to be fit-for-purpose, the strategy ranks the criticality of each mineral using various methodologies such as supply risk, employment indicator, domestic and export sales indicators, and substitutability indicator among others.”
The DMRE has also commissioned a study titled “The State of Mining,” conducted by the state-owned entity Mintek in collaboration with the Minerals Council SA, the Mapungubwe Institute for Strategic Reflection (Mistra), and researchers from esteemed higher education institutions. This study aims to produce an evidence-based report on the South African mining industry, considering several key factors, including the sector’s economic contributions and the performance and trends of each commodity in terms of production, exploration, exports, sales, employment, and pricing.
“There is a very strong case emerging out of these studies that the South African mining industry remains an attractive investment destination”, he added.
GNU positive vibes: Mthenjane
In a media statement from the Down Under Conference, Mzila Mthenjane, CEO of the Minerals Council of South Africa, highlighted that the improved sentiment towards South Africa under the new government of national unity, along with successful partnerships between the state and businesses to tackle the country’s electricity crisis urgently, are pivotal in rebuilding the growth agenda for the mining industry.
“The development of a vibrant exploration sector through an efficiently managed mineral rights system and investment-friendly regulations are fundamental building blocks for the future of a sustainable mining industry, which will serve as a catalyst for other sectors of the economy to invest and grow employment,” Mr. Mthenjane said.
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