By: African mining

At a media briefing hosted by the Minerals Council at the Investing in African Mining Indaba 2025 on 5 February, CEO Mzila Mthenjane, outlined “What Miners Want” and critical steps needed for South Africa’s mining industry to thrive and contribute significantly to the nation’s prosperity.

“The mining industry is the uncontested catalyst of South Africa’s economy,” said Mthenjane, explaining that the Minerals Council, believed that the mining industry has the potential to grow, and in so doing, will take along many other industries such as construction, manufacturing, financial services, transport, manufacturing, agriculture, business, tourism, skills development and education.

What mining achieved in 2024:

Despite significant headwinds, including lower commodity prices and a constrained export channel, South Africa’s mining industry contributed significantly to South Africa’s economy:

·         Mining generated a turnover of R1-trillion (-9% from 2023) from a diversity of minerals, including precious metals, bulk commodities and industrial minerals;

·         Mining contributed R433-billion (-2.6% from 2023) to the economy;

·         Mining employed 475 000 people and payed R195-billion in wages and R117-billion in combined taxes and royalties. If the multipliers of ten jobs created in other industries for every job in mining, and with each job supporting four or five family members – then mining really does matter;

·         Mining achieved a record safety performance;

·         Mining spent several millions of Rands within local municipalities both within the confines of social and labour plans and beyond on education, health, roads, municipal capacity building and infrastructure.

Mthenjane said, “We want to grow, because we want the mining industry to make a better, bigger and more sustainable contribution to the well-being of the people of South Africa, as already illustrated.”

He noted that the mining industry’s position is further strengthened by the fact that:

·         South Africa is the world’s largest supplier of platinum group metals, manganese and chrome because of the size of its deposits, it has a wealth of various other metals and minerals which are to date unexplored, and for decades it has dominated gold supply and still has vast resources;

·         Mining has been intrinsically involved in progress to date on electricity and logistics through the collaboration between business and government;

·         Eskom has had 311 days without loadshedding, with the private sector providing support and engineers to assist with power plants. The mining industry has a renewable energy pipeline of about 90 projects worth more than R275-billion to generate 15.8GW. As these projects are commissioned in coming years, it will take pressure off the grid, freeing up electricity for the economy.

·         Mining companies are the biggest users of rail and harbours – they have therefore played a critical role in collaborating with and assisting Transnet in implementing historic reforms to open its rail network and ports to private sector investment and participation, which will ultimately lift railed tonnes from about 160 million tonnes this financial year (to end-March) to an aspirational 250 million tonnes before this decade is over;

·         In the unfolding water crisis, mining companies are assisting in Limpopo and Northern Cape to ensure R37-billion in water supply projects are brought to fruition.

Therefore, said Mthenjane,“Ask not what the mining industry can do for you, but rather, what you can do for the growth of the mining industry.”

He then explicitly stated what would be required to enable the mining industry to play a strong and competitive game: “To win for the nation of Mzansi, we want:

·         a regulatory environment that encourages local and foreign investment into our prospecting sector, which for the past four years has attracted less than 1% of global exploration spending;

·         provisions for exploration companies in the DMPR’s review of the Mineral and Petroleum Resources Development Act (MPRDA), that are fit for purpose for prospecting, junior, mid-tier and major mining companies, encouraging investment through business-friendly laws;

·         the expected and timely introduction of a modern, transparent mining cadastre that will bring South Africa level with other mining jurisdictions in terms of efficiency of licencing to one: urgently manage the backlog of unprocessed prospecting and mining right applications, and two: speedily process and issue new applications without contestation and court cases, effectively removing perceptions of malfeasance. An investment-friendly exploration environment will encourage the creation of prospecting funds from the private sector, broadening the options for access to finance and opening further opportunities for new entrants to complement the funding from government that is granted on a conditional basis and excludes a broad range of newcomers;

·         government departments to be aligned and streamline various aspects of approving prospecting and mining applications. The creation of a one-stop shop for investors to expedite exploration and mining projects is critical. A holistic approach from a fully functional regulator, with skills and capacity to manage the sector is equally essential to align on the needs and performance of the industry, address the speed at which decisions are made and to strengthen the trust between the DMPR and the industry.

·         A process with the DMPR, which much like Operation Vulindlela, will focus attention on three or four key constraints on investment and growth in the mining industry, and to collaboratively work on fixing them as a matter of urgency.

“To conclude, South Africa is on a mission to ignite inclusive economic growth, create jobs and reduce poverty. The mining industry is a key player and contributor to this mission. We believe that a growing mining sector, with both large and small players, new entrants, including women- and youth-owned businesses, is a transforming sector.

Fully functional and cost-competitive infrastructure will encourage industrial investment, adding value to our minerals, and creating value for the country which will maximise the value of our exports, grow and broaden our economy and create jobs which will enhance the dignity and pride of all South Africans.”

Source: Speech delivered by Mzila Mthenjane, CEO, Minerals Council South Africa: “What miners want: to grow the South African mining industry.” (5 February 2025, Investing in African Mining Indaba 2025)