The Minerals Council South Africa has unveiled an investment and growth strategy aimed at unlocking more than R50 billion in mining capital expenditure by February 2028, as the industry seeks to increase production, attract investors and create jobs.
Speaking at the Joburg Indaba on Wednesday, October 7, Minerals Council president Paul Dunne said the strategy would address regulatory, infrastructure and administrative bottlenecks that have constrained the country’s mining potential.
The initiative comes as South Africa grapples with high unemployment and sluggish economic growth. Dunne noted that the country has 8.5 million unemployed people, while approximately 300,000 new job seekers enter the labour market annually. Economic growth is forecast at just 1% this year, below the estimated 3% needed to absorb new entrants into the workforce.
“The most significant constraint is the ability of the broader operating and regulatory environment to convert that opportunity into investment,” Dunne said.
Despite its substantial mineral resources and established mining expertise, South Africa has struggled to translate its geological advantages into increased production and exploration investment. Mining production remains below levels recorded more than two decades ago, while exploration expenditure has declined by 80% over the past 20 years.
The country attracts less than 1% of global exploration capital despite its significant mineral potential.
The Minerals Council estimates that sustained annual growth of 3% in the mining sector could add approximately R65 billion to South Africa’s gross domestic product in real terms and support between 50,000 and 100,000 additional jobs by 2035.
Mining was recently included among three priority sectors under the third phase of the Government-Business Partnership, alongside agriculture and tourism. The partnership aims to address growth constraints and put the economy on a path towards sustained annual growth exceeding 3%, while contributing to the creation of one million additional jobs by 2030.
Dunne said mining’s role in the economy extended beyond direct employment. The industry generates an estimated 10 upstream jobs for every mining job, while each mine employee supports between five and 10 dependants.
The council’s strategy has identified unreliable electricity, logistics and water infrastructure, crime, illegal mining and uncertainty in regulatory processes as major obstacles to investment.
To address these challenges, the Minerals Council and the Department of Mineral and Petroleum Resources have agreed on three priority workstreams.
The first will tackle administrative bottlenecks affecting mining projects, with the objective of unlocking more than R50 billion in capital expenditure by February 2028. The investment pipeline includes new projects, mine expansions and initiatives to extend the operating lives of existing mines.
The second workstream will focus on closing competitiveness gaps and improving South Africa’s attractiveness as a mining destination, including reforms related to the Mineral Resources Development Bill.
The third will support the implementation of a transparent and efficient national mining cadastre by March 2027. The system is intended to improve the administration of mineral rights, reduce uncertainty and strengthen investor confidence in exploration.
Dunne said the challenges required coordinated action across government departments, regulators, state-owned entities and the private sector, as many constraints fell outside the direct control of the minerals department.
He added that approximately R70 billion in mining investments was already committed and ready for implementation, although much of it was intended to maintain existing production levels.
South Africa’s mining industry generated R814 billion in export earnings in 2025, underscoring its importance to the economy.
Dunne said the strategy would help translate the country’s mineral wealth into stronger investment, exports, competitiveness and employment, with its success ultimately depending on effective implementation and a more predictable operating environment.
