Minerals Council CEO Reiterates Need for Coordinated Cross-Govt Policy Environment

Why It Matters

Without aligned policy and renewed exploration, South Africa risks losing its competitive edge in supplying critical minerals for the global energy transition, limiting economic growth and job creation.

Key Takeaways

• Coordinated policy across ministries essential for mining revival
• Exploration confidence must be rebuilt for greenfield projects
• SA mining output down 11% since 1994
• Junior miners face high legal costs and cadastre delays
• Diverse financing needed: equity, debt, royalties, streaming

Pulse Analysis

The shift to renewable electricity, electric vehicles and battery storage has turned copper, lithium, nickel and other so‑called energy metals into strategic commodities. South Africa sits on some of the world’s richest deposits of these minerals, yet the country’s mining policy remains fragmented across the Minerals and Petroleum Resources Department and other ministries. Mzila Mthenjane’s call for a coordinated cross‑government framework reflects a growing consensus that policy silos are throttling investment at a time when global demand is accelerating. A unified policy would also streamline royalties and land access, accelerating project timelines.

Data from the Minerals Council shows that South Africa’s mining sector is now 11 % smaller than it was in 1994, with a 7 % real‑term contraction between 2010 and 2025. The decline is not driven by price volatility alone; bottlenecks in the mining cadastre, high legal fees and a lack of an ‘exploration DNA’ have eroded confidence among junior operators. Without a pipeline of new greenfield projects, the country cannot replenish aging mines that were established three to five decades ago, jeopardizing long‑term supply‑chain security. Addressing these systemic issues could restore investor confidence and attract foreign direct investment.

To reverse the trend, Mthenjane and chief economist Bongani Motsa advocate a multi‑pronged financing ecosystem that blends equity, debt, streaming agreements, royalties and convertible instruments. Such diversity can lower the cost of capital for early‑stage explorers while mitigating sovereign risk. Coupled with streamlined permitting and a clear, unified policy agenda, these measures could unlock billions of dollars of investment, create jobs, and position South Africa as a cornerstone supplier for the global energy transition. Ultimately, a thriving exploration ecosystem will underpin South Africa’s contribution to a low‑carbon future.