The South African Ministry of Mineral and Petroleum Resources is undertaking a detailed analysis of the mining sector, examining production, exploration, exports, sales, employment, and pricing trends for various minerals.
Speaking at the Africa Down Under Conference in Perth, Minister Gwede Mantashe said government was developing a Critical Minerals Strategy to guide the exploration, exploitation, and processing of minerals in South Africa.
The ministry was also reviewing 115 applications for an exploration fund launched in June. This fund was designed to support emerging miners and discover key minerals such as copper, lithium, rare earth elements, and graphite. Mantashe expressed hope the initiative would lead to the discovery of new mines for these essential minerals, which are crucial for clean energy technologies and the broader energy transition.
The viability of South Africas mining industry is closely linked to consistent and affordable electricity supply, Mantashe said. He noted the progress made toward improving the energy landscape. Twenty-three mining companies have registered new power generation facilities, with a total capacity of 569 MW following the recent amendment to Schedule 2 of the Electricity Regulation Act (ERA) that removed licensing thresholds for embedded generation.
Despite global pressure to phase out coal, Mantashe reaffirmed its importance to South Africas economy. In contrast to a general decline in mining production in 2023, coal output increased from 230 million tonnes in 2022 to 232 million tonnes in 2023, he said, citing rising coal prices since 2020 as a factor contributing to increased production and employment in the sector.
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