Geological exploration is the beginning of the project. It’s impossible without her discover new deposits, and therefore to develop industry. However, South Africa, which has been extracting minerals on an industrial scale for more than a century, has almost forgotten how to finance and support exploration work.
Minerals Council of South Africa CEO Mzila Mthenjane says the country needs to re-instill a culture of exploration. Moreover, for critical minerals, the demand for which is rapidly growing, no special conditions are required – the same ones are needed: long-term predictability of policy and reliable security of subsoil use rights. It usually takes 13–15 years from the start of exploration to the launch of the mine, and then the mine operates for another 30–40 years. Investors will not invest huge amounts of capital without certainty of return.
Mthenjane stressed that the Mineral Resources Development Bill currently being discussed could provide the necessary legal certainty. If this succeeds, significant funds will flow into the industry, which will support not only the extraction, but also the processing of the extracted raw materials.
Kumba Iron Ore CEO Nompumelelo Zikalala highlighted dismal statistics: South Africa accounted for just 1% of global exploration spending in 2023. To change this, we need to speed up the search, as well as introduce the long-promised cadastral system. Zikalala also recalled that Anglo American had already contributed R600 million to the Support Fund junior exploration companies (another 400 million were added by the state). “We believe in exploration investment as an engine for inclusive growth,” she said.
The chairman of the board of directors of the chemicals and explosives company AECI, Philisiwe Sibiya, called for a broader view: not to argue about which minerals are important, but to think about how to turn extractive economies into production hubs. For example, manganese can be used to make battery components, moving up the value chain. At the same time, a regional approach is necessary—country strategies are ineffective individually.
Minister of Mineral and Petroleum Resources Gwede Mantashe, opening the discussion, assured that the government was committed to ensuring political certainty. “We are amending the basic legislation on subsoil use, taking into account all the opinions expressed. Exploration is the beginning of the value-adding process. Through partnerships, we can attract private capital,” he said.
Today, South Africa faces a choice: continue to live with past discoveries or begin to actively seek new resources again, creating the basis for an industrial future. Funds have already been created, statements have been made. Now we need real steps and, most importantly, stable rules of the game.
Source: Mining Weekly
