As global demand for critical minerals surges, SA cannot afford to be excluded from the conversation. With more than 90% of the world’s platinum group metal (PGM) reserves and accounting for 40% of global manganese production, we are central to the global energy transition and industrial transformation.
The department of mineral & petroleum resources has demonstrated its commitment to positioning SA as a premier investment destination. Through the launch of the Critical Minerals & Metals Strategy we have identified 18 priority minerals vital for future economic growth. At the Africa Down Under Conference in Perth, Australia, I presented our value proposition to investors, signalling our readiness to host mining investments, boost exploration expenditure and build strategic partnerships to drive long-term sectoral growth.
These critical minerals are not only essential for attracting investment but are also crucial to reviving our downstream and midstream sectors, particularly manufacturing. While we may not have the capacity to build a full fleet of electric vehicles (EVs), we can tailor our industrial policy to play a meaningful role in the EV value chain by leveraging our mineral resources. This requires unlocking investment potential for mining projects and encouraging exploration by minimising risks through fixed agreements between the government and communities, rather than waiting for boom periods to make regulatory changes.
Securing deals that benefit all parties requires a long-term perspective on beneficiation, supporting mining projects and their surrounding communities. This necessitates strong collaboration between the government and private sector. Municipalities must fulfil their service delivery roles, and mining houses, through their social labour plans (SLPs), can provide support where needed.
Despite our immense mineral wealth, the sector’s contribution to GDP has declined to about 5%. Listening to counterparts from Ghana and Egypt makes it clear that a competitive investment climate requires more than geological potential. Investment is not a charitable act; competition is growing as other countries also show a drive for investment. It is our responsibility to build a stable regulatory framework by working with other government departments to make SA an attractive mining investment destination.
• SA holds 90% of global PGM reserves and 40% of manganese production – vital to global energy transition.
• A new Critical Minerals & Metals Strategy highlights 18 priority minerals for future economic growth.
• SA pitched its investment case at Africa Down Under, committing to boost exploration and industrial partnerships.
• Industrial policy aims to integrate SA into the EV value chain, leveraging local mineral resources.
• Regulatory stability and risk mitigation needed to attract investment and support community benefit.
• Mining’s GDP contribution has dropped to 5%; global competitiveness demands more than geology.
• Lessons from Egypt and Ghana: investor confidence relies on regulatory clarity and efficient systems.
Egypt’s petroleum & mineral resources minister highlighted the country’s success in securing tier-one capital through fiscal stability and regulatory certainty. Projects such as the AngloGold Ashanti Arabian-Nubian Shield, a 3,000km² exploration initiative, demonstrate the potential of aligning sound policy with investor confidence. Similarly, Ghana has leveraged a modern mining cadastre system to enhance transparency, efficiency and investor trust, despite some governance challenges.
In SA we are preparing to launch our own cadastre system. Working closely with Minerals Council SA CEO Mzila Mthenjane, our focus is on building a high quality, data accurate and fully integrated digital mineral licensing platform. This transition from the existing SA Mineral Resources Administration System platform to a fully digitalised system marks a big leap forward.
Regulatory uncertainty
Potential investors have raised concern over regulatory uncertainty. While our mineral regime is complex due to overlapping commodities and spatial data challenges, we are addressing these issues to improve transparency and reduce turnaround times for permit approvals with the new cadastre system.
After the publication of the Mineral Resources Development Bill, which caused a stir within the mining sector, mineral & petroleum resources minister Gwede Mantashe made it clear that the mining industry should engage the department to address their dissatisfaction with the bill. This ensures that the final approved version will reflect the aspirations of business and the government.
Crucially, investors must understand that mining in SA cannot exist in isolation from environmental, social & governance (ESG) imperatives. Through SLPs we have provided a structured framework for companies to demonstrate tangible returns to communities. These mechanisms ensure mining is seen as a driver of local empowerment rather than mere extraction without benefit.
Winning the confidence of local communities is not optional; it is the foundation for long-term investment stability. Without social buy-in, mining projects face reputational risks, operational delays and community resistance. Our goal is to strike a delicate balance: maximising local socioeconomic benefits while ensuring SA remains a globally competitive investment destination. Mining companies must contribute to community development, but policy must also safeguard investor returns and project viability.
• Mgcina is deputy mineral & petroleum resources minister.
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