Remarks by the Honorable Minister of Mineral and Petroleum Resources Mr Gwede Mantashe (MP), Budget Vote 34 Department of Mineral and Petroleum Resources Cape Town, 19 May 2026
House Chairperson,
Chairperson of the Portfolio Committee on Mineral and Petroleum Resources,
Honourable Mikateko Mahlaule
Deputy Minister of Mineral and Petroleum Resources, Ms Phumzile Mgcina
Honourable Members
Distinguished Guests
It is an honour to table the Budget Vote 34 of the Department of Mineral and Petroleum Resources before this august House. We are tabling this Budget Vote during a difficult period in the global economy. A time when conflict rages in the Middle East with its tremors felt far beyond its frontlines, destabilising global energy supply chains and casting a long shadow over our own economic recovery.
In this era, where energy security is intrinsically linked to national stability, we cannot stand on the sidelines and be passive observers. This budget is our strategic response to these geopolitical realities, a commitment to protecting the livelihoods of our people, securing our energy future, and anchoring our economy against the rising tides of international instability and price volatility.
Evidently, working together with National Treasury, we introduced temporary relief measures, including a reduction of the fuel levy for a period of three months, from April to June this year.
Whilst South Africans have welcomed this intervention, we are fully aware that it is not a permanent solution. The reality confronting us is that South Africa remains overly dependent on imported refined petroleum products. It is neither sustainable nor just for a country with significant mineral and petroleum potential, such as ours, to remain exposed to external supply shocks in this manner.
This is precisely why our sustained focus on developing the Upstream Petroleum Industry and expanding our refining capacity remains correct, despite persistent pressure from certain environmental lobby groups. The fact remains that petroleum security is not a theoretical debate, but an economic necessity and a national imperative.
For this reason, it is imperative that we accelerate processing of the South African National Petroleum Company Bill (SANPC) to enable the full operationalisation of the SANPC as a strategic state-owned entity to enable meaningful and strategic state participation in the oil and gas sectors, as envisioned in the Upstream Petroleum Resources Development Act (UPRDA).
While global fuel supply challenges persist, I would like to assure the people of South Africa that we have sufficient fuel supply to meet demand, and that our fuel supply remains stable. Working closely with industry stakeholders, we continue to monitor the supply situation and will ensure ongoing transparency in this regard.
Honourable Members, despite prevailing global economic pressures, South Africa's mining sector continues to demonstrate resilience and remains a cornerstone of our economy.
South Africa’s mining Gross Value Add reached R477 billion in 2025, contributing approximately 6.3% to the country’s Gross Domestic Product (GDP). This growth was driven largely by strong iron ore and manganese exports, improved commodity prices, and strong sectoral performance during the first three quarters of the year.
Mining royalties collected into the fiscus totalled approximately R11.8 billion in 2025, marking an increase of 11% from the R10.6 billion recorded in 2024.
However, we must also acknowledge the challenges confronting the sector. Rising electricity tariffs continue to place severe operational pressure on mining companies, particularly deep-level gold and Platinum Group Metal (PGM) operations.
House Chairperson, last year, we made a solemn commitment to this house that the Critical Minerals and Metals Strategy would not become a document destined to gather dust on a shelf. We said, it must become a shovel in the ground and a magnet for investment.
Today, we are happy to share with you that the era of passive policy is over. We have moved decisively from blueprint to battlefield, aggressively actioning the framework to secure a seat at the head of the global critical minerals dialogue and transactions.
We are transforming our mineral endowment into a catalyst for industrialisation, investment, and economic growth. I can assure you that we are not just planning for the future, we are actioning it. A key pillar of the strategy is geoscience mapping and exploration. Through the Council for Geoscience (CGS), government continues to invest in high-resolution geoscientific data aimed at derisking exploration and attracting investment.
A key pillar of the strategy is geoscience mapping and exploration. Through the Council for Geoscience (CGS), government continues to invest in high-resolution geoscientific data aimed at derisking exploration and attracting investment.
We can report that through its Integrated and Multi-Disciplinary Geoscience Mapping programme, the CGS has increased national onshore mapping coverage from below 5% in 2019 to a cumulative 20% in the 2025/26 financial year. The CGS will continue scaling this flagship programme across both onshore and offshore domains, with a focused effort on generating and disseminating high-quality pre-competitive geoscience data.
This data can be accessed through the Virtual Core Library – launched at this year’s Mining Indaba – which serves as a strategic national asset designed to transform how South Africa unlocks value from its geological assets.
Our commitment to transformation is not a mere policy statement but an active investment in the next generation of industry leaders. Through the Junior Mining Exploration Fund (JMEF), capitalised at R400 million by the Department and the Industrial Development Corporation (IDC), we are dismantling the barriers to entry in the industry. We have translated this capitalisation into concrete action, with 13 projects already funded and exploration activity underway.
The first site in Bothaville in the Free State, targeting rare earth elements and associated minerals, has been drilled and completed. The results are now advanced towards interpretation and 3D-modelling. The second project in Giyani, targeting copper, nickel, and gold, is also nearing completion. This is a clear demonstration of a government actively driving the re-industrialisation and renewal of mining activity in South Africa.
We are also pleased to share that this government-led programme has sparked great interest from industry stakeholders with Anglo American being the first to pledge R600 million into the fund, taking the fund size to R1 billion. Building on the momentum of the JMEF, we are significantly scaling our efforts through the landmark R1,35 billion commitment made by the Public Investment Corporation (PIC) for exploration activities. We have agreed with the PIC that this allocation will serve as a Continuation Fund providing a seamless transition for the project pipeline emerging from the JMEF.
Honourable Members, the second pillar of the Critical Mineral Strategy requires us to build robust beneficiation and manufacturing capabilities to ensure value addition closer to the point of production.
However, this ambition continues to be undermined by the high cost of electricity, particularly within the ferroalloy industry, which remains among the hardest hit.
The reality is that South Africa cannot fully realise the benefits of local beneficiation until the issue of affordable electricity is resolved. This remains a central focus of the wholeof-government approach involving the DMPR, the Department of Electricity and Energy, National Treasury, the Department of Trade, Industry and Competition, and the Presidency.
The strategy further requires us to harmonise and modernise our policy and regulatory framework. As committed last year, we continue to strengthen the mining and petroleum legislative framework to unlock greater economic participation.
The Mineral Resources Development Bill (MRDB) is currently before the Office of the Chief State Law Advisor (OCSLA) for legal certification. Once all processes are completed, the DMPR will submit the Bill to Cabinet for approval before it is introduced to Parliament for consideration and adoption during the second quarter of this financial year.
The Mine Health and Safety Bill (MHSB), which seeks to reduce mine accidents and fatalities by ensuring that compliance becomes a core business function rather than an administrative exercise, is before this House for consideration. Once enacted, this legislation will strengthen accountability, tighten operational requirements, improve enforcement measures, and further our commitment towards achieving the goal of zero harm.
Notwithstanding the ongoing review of the policies, it is encouraging that the sector is already making strides towards attaining the goal of zero harm, as evidenced by a historic 41 fatalities recorded in the 2025.
While there was no fatality in the iron mines, and a reduction of fatalities in the coal sector from 6 in 2024 to 2 in 2025, as well as a reduction in the platinum mines from 19 to 11, the uneven performance of the gold sector remains a matter of concern that requires accountability and focused intervention.
Although 2024 and 2025 did not record disaster-type accidents, we cannot ignore the recent accidents that remind us of our vulnerabilities. The Ekapa disaster, which claimed five (5) lives, is a stark reminder that complacency has no place in this industry. Investigations regarding the disaster are already underway, and we will ensure that no stone is left unturned in uncovering the facts surrounding the disaster.
Honourable Members, allow me to account for the finances of the Department and the allocations made to our entities and strategic programmes.
For the 2026/27 financial year, the Department has been allocated R2.86 billion, of which R1.17 billion will be transferred to public entities and strategic programmes in support of mining regulation, exploration, mine rehabilitation, and transformation initiatives. Operational allocations include:
• R70.46 million for the South African Diamond and Precious Metals Regulator.
• R94.98 million for the Petroleum Agency South Africa (PASA).
• R666.9 million for the Council for Geoscience.
• R328.7 million for Mintek.
• R4.89 million for the Mine Health and Safety Council.
Project-specific allocations include:
• R23.48 million for the Mine Rehabilitation Research Project.
• R140.87 million for the Rehabilitation of derelict and ownerless mines.
• R48.1 million for the implementation of the Shale Gas Project
• R33.83 million for the Mine Water Ingress Project.
• R31.12 million for the Artisanal and Small-Scale Mining Project.
House Chairperson, let me conclude by expressing my appreciation to the Deputy Minister, Ms Phumzile Mgcina for her support and dedication in the execution of our mandate.
We also extend our gratitude to the Portfolio Committee on Mineral and Petroleum Resources for its oversight, guidance, and continued support.
We further acknowledge the valuable contribution of organised labour, business, and communities across the mining and petroleum sectors.
I further wish to thank the Director-General of the Department, Mr Jacob Mbele, together with the entire DMPR team, for their commitment and hard work.
Finally, I wish to thank my wife, Mrs Nolwandle Mantashe, my family, advisers, and the support staff in the Ministry for their unwavering support.
House Chairperson, with these remarks, I hereby table Budget Vote 34 of the Department for consideration and adoption by this House.
I thank you.
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