CAPE TOWN (miningweekly.com) – Anglo American drew applause on day two of the Investing in African Mining Indaba for the R600-million the diversified mining major has provided for exploration in South Africa.

Established with an initial R400-million, the Junior Mining Exploration Fund (JMEF) is a joint mining exploration fund managed by South Africa’s State-owned Industrial Development Corporation (IDC) and the Department of Mineral and Petroleum Resources (DMPR) with the Council for Geoscience (CGS) providing oversight and technical support in evaluation of applications.

“Working alongside the fund's existing partners – the DMPR, IDC and CGS – our shared ambition is to evolve this initiative into its next natural phase enabling not only Anglo American but many others to participate in and benefit from junior exploration across the country – including possibilities of being equity partners with juniors to discover South Africa’s next world-class mines,” said Anglo American CEO Duncan Wanblad, who was strongly applauded by attendees.

The fund seeks to empower South African junior mining businesses with funding to enable them to conduct exploration and prospecting work – this is part of government’s efforts to promote economic inclusion and support equitable economic growth. As part of the terms for funding, successful applicants receive non-repayable, convertible grants. Funds disbursed to recipients are convertible to equity or profit share upon successful discovery of an orebody.

Allocated R160-million in the first window of applications, which opened in June 2024, eight junior mining entities out of 117 applicants were selected for funding to advance geological mapping and other exploration activities. The scope of the first window was narrowed to include copper, nickel, lithium, graphite and rare earths. Following on the success of the first window, mining giant Anglo has formally committed R600-million to the JMEF to enhance its objectives.

Speaking during an exploration investment event hosted by the DMPR at the ongoing Mining Indaba, IDC CEO Mmakgoshi Lekhethe lauded Anglo for its decision to support the fund stating that private sector-led partnerships were critical to transforming and unlocking the potential of South Africa’s mining sector.

“As part of our mandate to support equitable economic growth, transformation and promote economic inclusion, the IDC and the DMPR each contributed R200-million to establish the JMEF.

“For us, Anglo’s financial commitment to the fund validates our role in de-risking critical sectors of our economy,” said Lekhethe at the event covered by Mining Weekly.

With an exposure of more than R42-billion, mining ranks as one of the most critical sectors in the IDC portfolio.

DMPR director-general Jacob Mbele also praised Anglo for its commitment to the JMEF stating that the mining conglomerate’s support demonstrated the standing commitment to empowering junior miners and fuelling exploration in the minerals sector. “Anglo’s partnership is a clarion call to the private sector to similarly support the JMEF,” said Mbele, adding that he was confident that more private sector-led companies would emulate Anglo’s gesture.

In addition to supporting junior miners with prospecting work, Mbele added that this fund formed part of South Africa’s mineral exploration strategy whose objective among others was to attract exploration investment, reignite mineral development and accelerate new mineral discoveries while encouraging optimal utilisation of the country’s mineral resources.

Following the success of the first window, the IDC and DMPR opened the second window whose scope was broadened to include applicants seeking funding in other mining sectors. The revised terms of reference in the new window state that applicants must be junior miners with a valid prospecting or mining right, and applicant’s maximum requirements should not exceed R50-million.

Other terms of reference require applicants to use funding for activities including early-stage discovery exploration.

Mineral and Petroleum Resources Deputy Minister Phumzile Mgcina made the point that South Africa’s renewed exploration drive is anchored in determination to derive greater value from the country’s mineral endowment, supported by deliberate state interventions designed to unlock new opportunities for growth and investment.

“The Council for Geoscience is our implementing entity – mandated to quantify the inherent value of South Africa’s mineral wealth across a range of strategic mineral commodities,” Mgcina reported   

She said success of projects supported under the junior mining fund included a project in Bothaville, in the Free State, a drilling phase targeting rare earth elements and associated minerals is being implemented.

In addition, two projects in the Northern Cape are scheduled to commence drilling this year and at least four.other projects are in the early stages of mapping and acquiring geophysical and geochemical datasets.

Together, these projects confirm that South Africa’s subsurface potential is, indeed, far from fully understood and realised.

This week, the CGS launched the Virtual Core Library as a strategic national asset designed to transform how South Africa extracts value from its geological assets.

This initiative is poised to advance mining into an era of digital transformation. By enabling the digital preservation and analysis of historical drill core, the library will fast-track exploration decision-making, reduce costs, and enhance South Africa’s competitiveness as an exploration destination.

The platform promises lower barriers to entry for junior and emerging explorers, as well as revitalise interest in underexplored regions. Most importantly, it safeguards our geological heritage while stimulating new exploration activity.