JOHANNESBURG (miningweekly.com) – The mineral reserves of South Africa hold enormous potential for the country’s future economic growth, newly appointed MC Mining MD and CEO Christine (Yi) He emphasises in an Op-Ed released on Wednesday, December 17.

Appointed MD and CEO of the Johannesburg Stock Exchange-listed and ASX-listed MC Mining in October – after serving in an interim capacity from July 1 – He points out that South Africa is “uniquely positioned” to benefit from advances in global technology, as mined metals and energy resources fuel the development of advanced materials and components.

“This future, and South Africa’s economic growth, will be boosted by attracting increased foreign direct investment (FDI) into the mining industry, and enabled by close cooperation between the public and private sectors, to ensure the benefits are shared equitably,” He writes, while expressing the viewpoint that "it is vital that a sustainable and responsible mining sector is developed and nurtured for the mutual benefit of South Africa and the world".

This observation has been made amid Moody's declining to upgrade South Africa’s credit rating in early December, and a lead analyst at the agency earlier suggesting that weak investment in South Africa remained a hindrance amid FDI offering GDP-increasing capital inflow, industry expansion, innovation, and infrastructure funding assistance

FDI contributes to direct and indirect employment growth by incorporating local supply chains and contributes to the fiscus through taxes on profits, salaries, property and sales. It can also present new technologies, management practices and production methods, fuelling innovation.

“These benefits are particularly pronounced in the mining sector, where FDI brings substantial capital-intensive investments with long-term operational lifespans.

“Mining FDI creates concentrated economic development in previously underdeveloped regions, establishing permanent infrastructure that benefits entire communities,” He points out.

“The sector's high multiplier effect means that for every mining job created, several additional jobs emerge in supporting industries, from equipment suppliers and logistics providers to professional services.

“Mining investments often catalyse beneficiation opportunities, enabling downstream processing and manufacturing that adds value to raw materials domestically rather than exporting wealth in its rawest form,” He emphasises.

An example of the significant benefits that can be realised through FDI is illustrated by the recent agreement between Hong Kong Stock Exchange-listed Kinetic Development Group Limited (KDG) and MC Mining Limited, an exploration, development and mining company operating in South Africa.

KDG, an integrated coal mining and trading group with extensive operational experience, is concluding a majority shareholding in MC Mining for a combined investment of $91-million.

This investment is allowing MC Mining to advance its flagship Makhado project, which is expected to begin production in early 2026. Once operating at design capacity, the FDI-enabled Makhado will be positioned for hard-coking coal production and will reduce the reliance of South Africa’s steel industry on imported hard-coking coal.

At the same time, it will accelerate MC Mining’s broader strategy of developing tenements in the Vhembe region of Limpopo province, including the Greater Soutpansberg projects and the Vele Aluwani colliery – a region in need of socio-economic development and acceleration of skills buildout and training.

“The investment shows how mining FDI can anchor regional industrial ecosystems,” He notes in the Op-Ed to Mining Weekly.

 Beyond the immediate mining operations, the capital injection by KDG is expected to stimulate ancillary industries, which demonstrates the cascading economic impact of strategic mining investments in developing regional hubs.

It will also enable MC Mining to take advantage of business development incentives offered by the adjacent Musina Makhado special economic zone, creating further vertical integration opportunities for the development of the regional industry.

The mining sector contributed 6% of South Africa’s GDP in 2024, and improvements to the country’s energy, logistics and transportation sectors stand to buoy the industry even further in the coming years.

KDG’s investment coincides with a period of renewed confidence in South African mining. For example, South Africa has recently commissioned a new underground gold mine, the first in 15 years, to take advantage of rising gold prices.

South Africa’s mining sector has advanced regulatory and legal systems and foreign investors are held to a high standard.

There is an understanding that investors are to earn their social license to operate, which is underpinned by the Mining Charter, the compulsory Social and Labour Plans that funnel investments into mine-host community upliftment, and other environmental authorisations and legal requirements.

“Reputable miners conform to South African and global best practice standards and help boost local development and living standards in communities surrounding their operations.  

“This framework, while rigorous, provides the certainty and transparency that sophisticated international investors value. When implemented effectively, it ensures that mining FDI generates sustainable, long-term value, transforming mineral wealth into broad-based and inclusive economic development, skills transformation, and community upliftment that persists well beyond mine life cycles,” He reiterates.

MINING EMPLOYMENT RISING

Just released by Minerals Council South Africa are statistics showing that South Africa’s mining industry added 2 000 year-on-year jobs in the third-quarter, bringing its workforce to 474 000.

On a quarter-on-quarter basis, South Africa’s mining industry expanded by 5 000 jobs, suggesting a modest but noteworthy rebound.

This dual-period growth highlights mining’s countercyclical potential and its role in stabilising employment.

Mining sector wages rose from R79 957 in the third quarter of 2019 to R108 759 in third quarter of 2025, a 36% increase.

Sustained demand for commodities such as chrome, gold and platinum group metals could continue to support incremental employment growth.