Mineral and Petroleum Resources Minister Gwede Mantashe delivered the department’s budget vote in Parliament on Wednesday, 2 July 2025.
Some specific projects to receive funding include:
In his written remarks, Mantashe explained that Mintek – the country’s national mineral research organisation – has completed a study on the state of mining in the country and the Critical Minerals and Metals Strategy for implementation, which shows great potential in the industry.
“Having produced individual commodity reports on 21 minerals, the critical minerals strategy shows that minerals, such as platinum, manganese, iron ore, coal and chrome ore, are poised to play a critical role in the South African mining industry and the economy for the foreseeable future.
“In contrast to the sceptic view that the South African mining industry is a sunset industry, with the comprehensive and up-to-date insights into key developments within global commodity markets, mineral production trends in South Africa and the mining sector’s contribution to the economy, we are now more convinced than ever that the South African mining industry is a sunrise industry.
“This mining frontier is filled with exciting opportunities for investors and the economy,” he said.
Mantashe acknowledged that the industry is operating in a challenging global landscape.
Despite these challenges, including escalating trade tensions, evolving geopolitical relationships and the US’s imposition of tariffs on some mineral exports, the industry remains a strong contributor to the national GDP.
“Despite the challenging global environment, mining gross value-added rebounded by 0.3% in 2024, from a 0.5% decline in 2023. Effectively, in rand terms, 2024 saw the mining sector contributing R451bn to the country’s GDP, thus sustaining the 6% total contribution to the GDP.
“In the same period, the mining industry’s export earnings totalled R674bn, comprising R586.4bn from primary minerals and R87.5bn from processed minerals, representing a decrease of 0.6% from R678bn in 2023,” the minister said.
The minister highlighted that the sustainability and future of mining in South Africa are dependent on new mineral discoveries, making the Junior Mining Exploration Fund critical for discovery and transformation.
“Established through a R200m allocation from National Treasury, matched by the Industrial Development Corporation (IDC), this fund is poised to unlock new mineral discoveries and drive transformation. The first funding call has already resulted in the signing of legal contracts with Black-owned junior miners.
“As the country navigates the natural decline of legacy commodities like gold, this fund will enable the discovery of new minerals that are essential for a range of industries, from advanced manufacturing to technology and infrastructure development.
“Expanding this fund is not just an investment in new mining frontiers but a commitment to ensuring that our mineral wealth contributes to a more inclusive and transformed industry,” he insisted.
Mantashe noted that, for its part, the Council for Geoscience (CGS) has implemented its Integrated and Multi-Disciplinary Mapping Programme to expand its onshore mapping coverage to meet the needs of the exploration community.
“This work provides the fundamental basis to outline the mineral potential and geological systems at an enhanced scale, allowing for greater clarity to focus on exploration initiatives.
“For the 2025/26 financial year, the CGS will continue with the implementation of this backbone programme, both onshore and offshore, to make available key pre-competitive geological data, information and knowledge for considered investment in minerals exploration,” he said.
SAnews.gov.za is a South African government news service, published by the Government Communication and Information System (GCIS). SAnews.gov.za (formerly BuaNews) was established to provide quick and easy access to articles and feature stories aimed at keeping the public informed about the implementation of government mandates.
Go to: http://www.sanews.gov.za
