JACOB MBELE | Mining can grow again

South Africa’s mining industry remains central to our economy, our industrial base and the livelihoods of hundreds of thousands of workers and communities.

Yet, over the past decade, the sector has faced severe headwinds: deteriorating logistics performance, steep electricity tariff increases, volatile commodity cycles and the rise of organised illicit mining.

These pressures have constrained output and eroded investor confidence.

The government has not been indifferent to these challenges. On the contrary, we have been implementing reforms and operational changes, in partnership with industry and other stakeholders, to restore competitiveness, rebuild certainty and crowd in investment.

The current mining licensing system, Samrad, has become synonymous with opacity, administrative backlogs and disputes. This is untenable. We are therefore replacing it with a modern, fully online mining cadastre system that will bring transparency to mineral rights administration and ensure faster, more efficient processing of applications.

The rollout of the cadastre, starting in the Western Cape, was publicly demonstrated at the recent Mining Indaba. While progress has been slower than anticipated, implementation is advancing. A transparent, reliable cadastre is foundational to investor confidence and to restoring South Africa’s reputation as a predictable mining jurisdiction.

As we work on the next iteration of the Mineral & Petroleum Resources Development Act (MPRDA), alongside implementation of the critical minerals and metals strategy, our objective is clear: to anchor predictability in law and policy while continuing to advance broad-based transformation through the conditions attached to mining rights, as empowered by statute.

Without exploration there is no future for mining. South Africa’s share of global exploration expenditure is estimated at below 1% — and that must change.

The cabinet’s approval of the critical minerals and metals strategy positions geoscience mapping and exploration as central pillars of our mining growth agenda. Strengthening geological data, improving mapping and supporting early-stage exploration are essential to rebuilding our project pipeline.

The cabinet’s approval of the critical minerals & metals strategy positions geoscience mapping and exploration as central pillars of our mining growth agenda.

The government has committed R400m in seed funding to the Junior Mining Exploration Fund. This has catalysed an additional R600m from Anglo American, with other potential partners indicating interest in contributing to the fund.

As part of the critical minerals and metals strategy implementation, work is under way to develop instruments and incentives that will shift early-stage risk and crowd in private capital.

The country’s critical minerals & metals strategy and implementation plan, supported by the G20 Critical Minerals Framework, set out a clear pathway for expanding local and regional beneficiation and positioning South Africa more competitively in global supply chains.

The strategy is anchored on six core implementation pillars:

• Geoscience mapping and exploration — strengthening data, mapping and exploration to unlock new potential and build investor confidence.
• Value addition and localisation — ensuring that more of the mineral value chain takes place locally, from refining and processing to advanced manufacturing.
• Research, development and skills — investing in technology, innovation and people to support competitiveness and long-term resilience.
• Infrastructure and energy security — enabling reliable energy, efficient transport and logistics, and critical water systems to support mineral development.
• Financial instruments for local beneficiation — deploying targeted financial tools and incentives to mobilise capital and accelerate beneficiation investments.
• Regulatory and policy harmonisation — creating a predictable, coherent regulatory environment that supports investment and sustainable development.

Together, these pillars provide a clear roadmap for shifting South Africa’s role from primarily an exporter of raw minerals to a value-adding participant integrated into regional and global supply chains.

Logistics performance has faced significant challenges. Through the national logistics crisis committee and Transnet’s recovery plan, the government has opened the way for structured private sector participation and third-party access on key freight corridors.

Critical maintenance and equipment upgrades on bulk lines are being prioritised. Every additional million tonnes railed translates into billions of rand in export earnings and fiscal receipts. Public and private balance sheets are aligning to unlock this value and restore reliability to export channels.

Electricity availability has improved significantly, but affordability remains a pressing concern. Regulatory reforms are being implemented to enable greater competition and flexibility in power supply. Mines are commissioning embedded renewable energy projects and entering into long-term power purchase agreements to hedge price risk and reduce emissions.

This is particularly critical for energy-intensive operations, including smelters. No beneficiation strategy can succeed in an environment of uncompetitive power. Government reforms are designed to fundamentally alter that equation.

Organised illicit mining, procurement mafias and metal theft undermine safety, revenue collection, environmental integrity and investor confidence while devastating affected communities.

Through Operation Vala Umgodi, co-ordinated via Natjoints and led by the SAPS in partnership with the department and other agencies, enforcement is shifting from sporadic raids to sustained, intelligence-driven operations.

Arrests, seizures and disruptions in hotspot areas demonstrate that a properly resourced and co-ordinated multi-agency approach can be effective.

The interventions outlined above are not aspirational statements; they are being implemented.

South Africa’s geology remains world-class. Our policy framework is moving with urgency and in partnership with stakeholders to ensure that the country’s mining industry continues to grow, sustainably, competitively and inclusively.

• Mbele is director-general of the department of mineral & petroleum resources.