Remarks by the Honourable Minister of Mineral and Petroleum Resources Mr Gwede Mantashe, Joburg Indaba, The Inanda Club, Sandton
Chairman of the Joburg Mining Indaba, Mr Bernard Swanepoel Captains of the Industry
Distinguished Guests
Let me start by congratulating the organisers for convening yet another successful
Joburg Indaba.
Our continued participation at this Indaba stems from our belief that sustained engagement on mining in South Africa is vital to assess the state of the industry and identify pathways to improve its performance and contribution to our country’s socio-economic development.
As we conclude this year’s Indaba, we are encouraged that – despite global headwinds and shifting geopolitical dynamics - the South African mining industry continues to make a positive contribution to our Gross Domestic Participation (GDP).
This is evident by the sector’s second quarter performance, during which mining output grew by 3,7%, adding 0,2 of a percentage point to the GDP. Even more encouraging is that employment in the sector grew by 0,7%, reversing recent job losses and sustaining thousands of livelihoods.
This progress demonstrates that, through collaboration and a shared vision, mining can continue to serve as the backbone of our economy. It also shows that by prioritising exploration, local beneficiation, and research and development, we can maintain global competitiveness and drive sustainable growth.
The strong performance of platinum group metals (PGMs), gold, and chromium ore highlights their continued relevance to both our economy and global market trends.
It is within this context that our Critical Minerals Strategy recognises all minerals as essential drivers of economic growth, industrialisation, job creation, and national security.
Despite its long history of mining, gold remains a major contributor to our economy and employment. With gold prices reaching record highs, we must seize this opportunity through increased exploration and production. It is for this reason that gold has been included among the targeted minerals for the second window of the Junior Mining Exploration Fund. This is informed by the fact that over 40% of global exploration spending focuses on gold.
We welcome the imminent opening of a new underground gold mine by West Wits Mining, which serves as a positive sign of renewed investor confidence, and a demonstration of South Africa’s endowment with gold despite its century old history of mining.
Similarly, strong prices for platinum and palladium bode well for the PGMs sector. Given South Africa’s dominance in this market, these developments present opportunities to strengthen our position and influence.
We are, however, acutely aware of the challenges posed by infrastructure constraints - particularly in rail and ports - and the high cost of electricity, which remain major risks to the mining sector. Bulk commodities such as manganese and chrome are particularly affected.
We are working around the clock to find lasting solutions. It is encouraging that there is now a greater appreciation for the use of preferential electricity tariffs for the ferrochrome, manganese, and steel industries to support the rebuilding of local smelters. This will enable greater local value addition, drive beneficiation, attract investment, and create jobs, thereby ensuring that South Africa moves beyond exporting raw minerals to producing high-value products.
Our efforts to create an enabling regulatory environment that supports current and future mining opportunities are beginning to take shape. Following the 60-day public comment period on the draft Mineral Resources Development (MRD) Bill, we received extensive and valuable input from stakeholders.
In addition, our engagements with the industry have been constructive, and have demonstrated our understanding on the core principles that will guide the final Bill - aiming for a clear, predictable, and investor-friendly framework that also ensures equitable sharing of South Africa’s mineral wealth.
With the public consultation phase now almost complete, the drafting team is now reviewing all submissions to produce a balanced Bill that promotes economic growth, environmental protection, and social development. Further updates on the finalisation of this process will be provided in due course.
Programme director, allow me to also take this opportunity to thank the industry for being patient with us, as we have been working on a system to modernise our mineral rights management, thereby enhance transparency, streamline application processes, and attract much-needed investment into the country's mining sector.
As stated previously, the development of the system is progressing well. The phased rollout of the system has commenced in the Western Cape, where clients are currently enrolling and verifying their data.
We can also report that since our last Joburg Indaba, the department has processed and finalised two thousand, three hundred and ninety-one (2 391) new applications, excluding ancillary applications.
We are convinced that this modern cadastre system will reduce uncertainty and attract investment by providing secure and up-to-date records of mineral rights.
Before I conclude, I must raise an important concern regarding the sectors performance on mine health and safety. While improvements have been recorded in other sectors, most notably the coal sector, we are seeing regression in gold and PGMs. Achieving our goal of zero harm will require intensified collaboration, adoption of safer technologies, and strict adherence to safety protocols.
We call on the industry and organised labour to join hands with government in prioritising the wellbeing of mineworkers. In this regard, we will convene a meeting with the industry with an aim of finding lasting solutions to this challenge.
Together, we can ensure that mining remains a pillar of our economy - one that grows inclusively, innovates continuously, and protects the lives of those who convert investments into wealth.
I thank you.
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