By Sharyn Macnamara
Mining matters – locally and globally in Africa’s journey to wealth creation and sustainable prosperity. Mineral exploration, mine development and sustainable existing operations in Africa are critical to answer the call for strategic, critical minerals essential for a just energy transition, digital and renewables infrastructure and defence applications. Beneficiation or value addition are also key for the sustainable growth of economies on the continent. But none of this is possible without an investor-friendly environment created by stable in-country infrastructure and just government policy and regulatory certainty, says the Minerals Council South Africa, which advocates for the majority of the mining sector locally.
Sharyn Macnamara, editor, African Mining, © African Mining, incorporating Mining Mirrorincorporating Mining Mirror
Africa on a global stage
Minerals Council SA CEO Mzila Mthenjane’s keynote address at the DRC Mining Week in June hit the nail on the head. Mthenjane said, “We are on the verge of a once-in-a-generation mineral and metals investment boom. The global population is approaching 10 billion people, and many parts of the world, including us in Africa, are pursuing net zero emissions in 2050 and beyond. For emerging economies, there is a narrow window of opportunity to seize now.”
He said that this required “development and transformation at scale within the continent – a development approach that is mutually beneficial to Africa and the world, in terms of both social and economic upliftment of the continent AND enabling the world to transition to a low carbon future.”
Within this context, Mthenjane called on African leadership “to position mining as a catalyst and translate the mineral wealth beneath the surface of the earth into wealth above surface, economic prosperity and social progress, thus establishing a firm pathway to a just transition for the nations of Africa and the world, leaving no one behind”.
He explained that: “The realisation of wealth above ground will require African governments to:
- Focus on creating predictable and reliable regulatory environments to attract and retain investment for mining projects which tend to be multi-decade commitments of significant capital expenditure,
- Create investment landscapes within which industry can confidently plan and allocate financial and human capital, and
- Align fiscal policies with global priorities such as critical minerals, electrification and infrastructure development.
“In return, investors can ensure that: –
- They invest for the long term and operate to maintain and grow their societal license to operate.
- Encourage responsible mining such that mining is conducted safely, maintaining high standards of health for employees and environmental stewardship and commit to sustainable resource development, and
- Develop a government-investor compliance culture that supports doing what is right and seeking better ways of operating.”
He concluded, “With the first G20 at leaders’ level hosted on African soil in November, the continent has a new meeting with history to claim its place as central to global financial reform. South Africa’s G20 presidency is a rare opportunity to advance the reshaping of global governance, amplify the African voice and position the global South as a meaningful partner in international decision-making.”
Review on the home front
At both the Junior Mining Indaba 2025 and the Minerals Council South Africa’s AGM, the recently published and “open for public comment” Mineral Resources Development Bill, was a key focus for all of the above reasons, and more.
At the AGM, Minerals Council president, Paul Dunne, said that the South African mining industry “is a cornerstone of economic stability and progress” but that the industry had taken a knock – in 2024 company tax halved to R43.6-billion, royalties shrank to R16-billion from R25 billion and the industry’s contribution to GDP is now 6.1%, reduced from 6.3% in 2023.
He pointed to two issues. One: the cost of power, referring to the recent Eskom NERSA-agreed rate increase, compounded by additional charges in the tariff structure, emphasising that “Effectively, these cumulative and compounding increases are putting our beneficiation processes to the sword and threatening the future of the remaining large shaft systems.” And, two: he said, “Our sector needs to be prioritised from a policy point of view such that South Africa remains an attractive destination for investment and exploration with a distinct link to job creation and job preservation.
“We cannot control global commodity prices, but we can invest through the cycle if, and only if, the right policies and investment climate are in place. These policy levers, broadly speaking, lie with government.” (See the monthly Minerals Council column in our African Buzz section for more)
MPRDA revision – an open discussion
In response, Minister Mantashe acknowledged the importance of the mining sector. He pointed out that, “Mining is both abusive and addictive” and he pointed to the “value of partnership” – adding that, like the nature of mining, it has both highs and lows. He said, “The MPRDA revision is an open discussion,” and he invited industry to raise its concerns. “Talk to us,” he said, however, “We will not remove provision for Black Economic Empowerment in the Act.”
He warned against “shadow boxing” and reminded the audience of the historic inequalities which must not be forgotten nor repeated, adding that there is a responsibility to correct the past through policy. “Associating the affirming of people with cadre deployment is a false discussion,” said Mantashe. He added that BEE aims to integrate the growth of black capital into a flourishing mining industry to address the over-concentration of ownership of the means of production in the sector, not to “chase away” investment. He confirmed that, “Now and in future, there is no provision for BEE on prospecting, as we are looking for quality and quantity of deposits, not at creating value here. But, once discovered, we want you to have a BEE partner.”
In addition he noted that SLPs must change the face of mining rather than being a compliance issue; that artisanal and small-scale mining is a focus point to manage the abandonment of marginal deposits difficult to mine, and thereby manage the illegal mining element that follows and he touched on possible beneficiation tariffs, adding that the newly launched Critical Minerals Strategy requires contextualisation and the development of implementation strategies. He ended on a positive note saying that the Mine Health and Safety, partnership in industry is empowering improvement.
The Minerals Council made it clear that it would engage the Minister and the DMPR team robustly on the MPRDA revision and that it would respond formally through the public consultative process, and beyond, should that be required, and that detailed responses would be made public at the appropriate time.