Indaba: South Africa ties mining reform to continent’s $30T industrialization push

South Africa has begun deploying its critical minerals strategy and overhauling key regulations as part of a push to revive exploration, expand downstream beneficiation and fix infrastructure bottlenecks, ministers said at the Mining Indaba in Cape Town.

The strategy, first drafted in 2024 and now complete, seeks to move the country beyond a traditional “pit to port” model towards industrialization at source, integrating mining with energy, transport, water and trade policy.

“South Africa must become globally competitive by adding value to our minerals through downstream beneficiation,” Mineral and Petroleum Resources Minister Gwede Mantashe said on Monday at the continent’s largest mining convention. “It’s about breaking out of our silos and doing what’s necessary to achieve our national objectives.”

The strategy’s roll-out comes as Pretoria works to reposition itself amid intensifying global competition for critical minerals and heightened geopolitical tensions.

African potential

That repositioning is reinforced by a new study released at Indaba by Lagos-based Africa Finance Corp. (AFC), which estimates the continent hosts $29.5 trillion in mine-site mineral value – about 20% of global mineral wealth – yet captures only a fraction of the economic value embedded in that endowment. Of that total, $8.6 trillion remains undeveloped, reflecting under-exploration and fragmented geological data that continues to elevate risk perception and constrain capital.

Crucially, the AFC’s Compendium of Africa’s Strategic Minerals argues that mine-site values significantly understate Africa’s true potential because they exclude the much larger value created when minerals are processed into steel, fertilizers, batteries and alloys. Measured at the point of industrial use, Africa’s mineral endowment expands by an order of magnitude – strengthening the economic case for beneficiation, integrated infrastructure and regional value chains.

The AFC initiative aims to “reframe the sector through an African lens and convert endowment into execution pathways for our collective prosperity,” AFC President and CEO Samaila Zubairu said.

Black empowerment

A key plank of Pretoria’s policy reset is regulatory reform. Mantashe said the government has removed the requirement for Black Economic Empowerment participation at the prospecting stage to stimulate high-risk exploration and rebuild the project pipeline.

Between February 2025 and January 2026, the department granted 358 prospecting rights and 32 mining rights, signalling continued activity in the sector.

The renewed policy thrust is unfolding alongside major project milestones. The Platreef platinum group metals project, owned by Ivanhoe Mines (TSX: IVN; US-OTC: IVPAF), has begun production in Limpopo and is projected to become one of the world’s largest platinum mines.

Platinum’s prominence could be rising in South Africa as gold declines. The country was the world’s top producer of gold in the early 1990s but its output has fallen 83% in the years since as other countries have moved into the top ranks of yellow metal producers, according to Metals Focus. West Wits Mining (ASX: WWI) has opened the Qala Shallows gold mine, while private miner Seriti Resources has advanced its Naudesbank colliery and Arnot OpCo has developed its open-cast coal operations. Ikoti Coal has also commenced underground operations.

Exploration fund

Meanwhile, commitments to South Africa’s Junior Mining Exploration Fund (JMEF) have grown to more than R2 billion ($125 million) from an initial R400 million contributed by the department and the government’s Industrial Development Corp., deputy minister Phumzile Mgcina said. The second funding round has drawn 80 applications targeting tin, tungsten, titanium, uranium, gold, antimony, arsenic, fluorspar, copper and lithium.

One JMEF-backed project in Bothaville in the Free State has advanced to drilling for rare earth elements and associated minerals, while additional projects in the Northern Cape are scheduled to begin drilling this year, Mgcina said.

The Council for Geoscience has also launched a Virtual Core Library to digitize historical drill core and lower barriers to entry for junior explorers.

Parallel reforms aim to address structural constraints. Transport minister Barbara Creecy outlined freight-rail reforms, including the introduction of private operators and the creation of a Transport Economic Regulator, to restore rail as the backbone of cargo transport.

Slashing red tape

Water and sanitation minister Pemmy Majodina said water licensing timelines have been cut from as long as three years to 90 days through an online system, while stage two of the Lesotho Highlands Water Project has commenced.

Energy policy is being aligned with the critical-minerals drive. Coal still provides about 85% of South Africa’s electricity supply, but the Integrated Resource Plan envisages a more diversified mix including nuclear, renewables and battery storage, deputy electricity and energy minister Samantha Graham-Maré said.

“The goal is to achieve a stable energy mix that protects livelihoods and facilitates new industries like electric vehicles and battery technology,” she said.

Under the Trade and Industry Ministry, initiatives seek to promote beneficiation and industrialisation within South Africa rather than simple raw-material exports, minister Parks Tau said. These include agreements such as the EU-South Africa Clean Trade and Investment Partnership and a R100-billion accession arrangement from the Cairo-based African Export-Import Bank.

Taken together, the measures reflect Pretoria’s attempt to rebuild investor confidence, accelerate exploration and align mineral production, processing capacity and infrastructure around long-term industrial demand. It’s a shift that underscores Africa’s broader effort to capture more value from its mineral base.