By Contrary to popular sentiment, the Minister for the Department of Mineral and Petroleum Resources Mr Gwede Mantashe believes that South African mining industry has a bright future ahead and can compete effectively in global markets.
The sector has been facing major challenges with the global demand for diamond declining and gold sales also on the decline. As the world shifts towards green energy and products, it creates uncertainty for the future of coal mines in South Africa.
Speaking at the 90th conference of the research focused entity Mintek in Sandton, Johannesburg on Monday, 11 November 2024; the Minister told the conference that based on the research of Mintek, the mining industry has potential to produce and supply minerals needed for the creation and development of green products.
“The need for the world to transition from high carbon emissions to low carbon emissions has increased the demand for “green” minerals. As the world’s largest producer of manganese and chrome, the South African manganese and chrome sectors are equally poised to play a significant role in the global automotive and construction industries given the expected demand for green technologies and electric vehicles,” said Minister Gwede Mantashe.
In light of the changing world, the Minister said Mintek has done extensive research which gives the government a clear and sober picture on the state of the mining industry and its potential to grow the country’s economy. Mantashe is however optimistic about the future of the mining sector in the fast paced climate change conscious world.
“Thanks to the work that is being pioneered by the entity, in collaboration with the industry and various research institutions, that we can now confidently describe the South African mining industry as a sunrise industry that is diversifying from the gold mining era to a diversified industry with the world’s largest reserves of platinum group metals (PGM), manganese, chrome, coal, vanadium, and rare earth minerals.
Whereas the gold sector is in decline due to deep levels mines, and heightened security concerns, Mintek’s contribution to the PGM sector, particularly through the Upper Group 2 (UG2) research and development initiative, has established the viability of mining previously challenging deposits of these resources, thereby leading to substantial contributions to the country’s PGM reserves. In 2023, South Africa supplied over 70% of the world’s platinum, 38% of palladium, and 81% of rhodium to the global commodities market,” he said.
“As we continue to engage the manganese and chrome producers on mineral value-addition close to the point of production, given its existing pioneering research capabilities, Mintek can be a significant player in the global clean energy economy. While there is no universal consensus on the “critical minerals”, the approach by Mintek in developing South Africa’s critical minerals strategy is poised to guide not only South Africa’s, but Africa’s responsible exploration, processing, and exporting of these essential resources,” he continued.
Mantashe affirmed that he has received the research by Mintek and has discussed the state of mining industry in the country with Cabinet; they are now taking the draft critical minerals strategy through cabinet processes for its consideration and contributions.
