Mining research council Mintek CEO Dr Molefi Motuku has emphasised the need to leverage South Africa’s critical minerals resources, estimated to be worth more than $2.5-trillion, to drive economic growth and industrial development.

Presenting a report at this year’s Investing in African Mining Indaba on South Africa's vast potential in the critical minerals sector, he pointed out that the country had an 88% market share of the world’s platinum-group metals and an 80% global market share of manganese, as well as impressive market ratios for chromium and vermiculite.

“South Africa is uniquely positioned to benefit from the global energy transition, but we must act strategically to develop the necessary infrastructure and downstream industries,” he said.

The report's findings underscored the country's strategic move towards a mineral-driven manufacturing economy, he added.

“There is a decisive shift towards a more diversified South African mining sector, poised to capitalise on the global demand for green energy technologies.”

However, the Mintek report also highlighted the concerning decline in mineral exploration investment, which decreased to R1.2-billion in 2023 from R6.2-billion in 2008.

This represented a significant drop from more than 5% of the global exploration budget to below 1%, and highlighted the urgent need for policy interventions and investment incentives to revitalise this crucial sector, said Motuku.

Meanwhile, industry employer organisation Minerals Council South Africa CEO Mzila Mthenjane, representing the mining industry, stressed the need for collaboration between government, industry and communities.

“We need to work together to ensure the benefits of mining are shared equitably, and that we develop a sustainable and responsible mining sector,” he emphasised.

The development of downstream industries was crucial to maximising the value of South Africa's mineral resources and creating long-term economic opportunities, concurred electrolytic manganese refinery Manganese Metal Company executive chairperson Bernard Swanepoel.

Further, Mineral and Petroleum Resources Minister Gwede Mantashe emphasised the government's commitment to creating a conducive environment for investment.

“We are working to streamline regulations and provide the necessary support to attract both local and international investors,“ he said.