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South Africa’s national mineral research organisation, Mintek, has adopted a methodology that is based on assessing the criticality of minerals across five primary criteria Countries in Africa must define what critical minerals mean to their national context and not piggyback on how some of the developed world has chosen to pigeonhole it. In his opening address at the Investing in African Mining Indaba today (3 February), Minister of Mineral and Petroleum Resources Gwede Mantashe made a clarion call for Africa to understand the negotiating power it possesses through its critical mineral wealth. “There is evidence that the African continent hosts significant reserves of industrially important minerals such as manganese, copper, coal, nickel, cobalt, titanium, vanadium, lithium, and rare earth minerals,” said Mantashe. With the growing demand for these critical minerals, Africa must assert its advantage and take charge of the growing demand. “We cannot continue to debate these minerals based on the dictates of some developed nations as if we have no aspirations to accelerate Africa’s industrialisation and close the development deficit. “There is no other point in time that will be more opportune for Africa to take control of its development while still pursuing our strategic partnerships with the rest of the world. We must, therefore, avoid the race to the bottom. “The truth of the matter is that Africa is the world’s richest mining jurisdiction, possessing at least 90% of the world’s chromium and platinum, 40% of the world’s gold, and the largest reserves of the world’s cobalt, vanadium, manganese, and uranium. Despite having these abundant mineral resources, Africa remains poor, and this must change.” Re-defining critical minerals in Africa Mantashe said that whereas the notion of critical minerals lacks consensus on the definition and categorisation, several nations – in particular developed nations – have conceptualised these minerals according to their national contexts. “In the main, these nations have defined these minerals according to their importance in the energy transition; hence the emphasis on ‘green minerals’ and thereby ignoring all other value chains, such as the mobility sector, medical applications, and digital economy.” Mantashe argued that instead of using a narrow definition and classification system for these minerals, Mintek – South Africa’s national mineral research organisation – has adopted a methodology that is based on assessing the criticality of minerals across five primary criteria: export significance, local economic significance, industrial importance, employment, and global market demand. “This is informed by our firm view that critical minerals cannot be synonymous to energy transition. Instead, they must facilitate the developmental and sustainability objectives within domestic and international industrial sectors. The strategy is now near completion and slated for cabinet approval by the end of this month.” The study on the state of mining and South Africa’s critical minerals strategy is to be discussed during a presentation at Mining Indaba tomorrow (4 February). Convened under the theme Future-Proofing African Mining, Today!, this year’s indaba coincides with the 70th anniversary of the adoption of the Freedom Charter, which contains the call for “the people shall share in the country’s wealth”. “This gathering is precisely about having discussions about Africa’s mineral wealth and her people sharing in it,” said Mantashe. Importance of mining to economies Ahead of Mantashe’s address, the Minerals Council of South Africa, during a press briefing, highlighted that the industry: Directly contributed 6% to South Africa’s total nominal gross domestic product (GDP) in the first three quarters of 2024. This was down from 6.3% in 2023. Exported goods worth about R800 billion, contributed 45% to the value of overall South African merchandise (goods) exports. Contributed more than R100 billion to the national fiscus during 2023/24 in the form of corporate taxes, VAT payments and through mining employee personal income tax payments. Provided direct employment to 471,882 people in the third quarter of 2024. Driven by retrenchments in the under-pressure platinum group metals (PGMs) sector, mining sector formal employment declined by almost 12,000 people in the first three quarters of 2024. Even so, the mining sector still contributed 4.5% to total formal sector employment in South Africa. In the first three quarters of 2024, the average employment in mining was 474,876. Mzila Mthenjane, Minerals Council of South Africa CEO, said: “These meaningful contributions once again highlight the importance of mining to the South African economy. If we can make further progress on lifting the remaining constraints on mining, including the momentum to Transnet’s rail and port volume targets, dealing with crime and corruption as well as regulatory inhibitors, the sector has the potential to contribute to the performance and strength of the economy and enable broad social upliftment and progress.” Mthenjane said he did not want to create the impression that the industry is not facing “tremendous” headwinds with commodity prices and export channel difficulties, but we think we are seeing the platform laid for a recovery in the operational environment for our sector. Water challenges in South Africa and its impact on mining The Minerals Council’s CEO pointed out that water is a growing crisis for the industry, the economy and society at large. “During 2024, several mining operations were disrupted by constrained water supplies. This is no longer an emerging crisis, but it has manifested in different regions to varying degrees and it demands urgent intervention at the highest level in a partnership between government and the private sector. “I am pleased to illustrate how, once again, mining companies have stepped up as trusted social partners in Limpopo for the Lebalelo water project and in the Northern Cape at the Vaal Gamagara Water Supply Scheme to ensure water is supplied to communities, mines and other businesses. “The combined total cost of these two initiatives is about R37 billion. The presence of mining as an end-user will enable the financing, assisting government to raise the required capital for construction.” ESI |
