South Africa’s mining sector has reported notable advancements in addressing longstanding challenges, though significant obstacles remain.
According to Minerals Council South Africa CEO Mzila Mthenjane, the industry’s dual focus on immediate infrastructure rehabilitation and long-term exploration to foster growth.
“We are an industry that has spent a significant amount of capital, planning for increasing capacity, but was disappointed by infrastructure. As infrastructure performance improves, we’ll see the expansion of the industry,” said Mthenjane during the opening ceremony of 31st edition of Investing in African Mining Indaba 2025 happening at the Cape Town International Convention Centre (CTICC).
Mthenjane highlighted the industry’s shift from deep-level gold and platinum operations to bulk mining in regions like the Northern Cape, particularly for iron-ore, manganese, and chrome. However, he noted that growth has been hindered by challenges in logistics and electricity, leading to missed opportunities during commodity booms.
“We’ve missed out on a couple of booms because of [inadequate] infrastructure, particularly logistics and electricity.”
The sector’s reliance on Transnet Freight Rail (TFR) and the disruptions caused by power supply interruptions have had profound impacts. Mthenjane pointed out that with 50% of mineral production transported by TFR and 40% of production in sectors such as platinum group metals (PGMs) and gold dependent on stable electricity supply, the industry’s performance is closely tied to these infrastructures.
Looking ahead, Mthenjane expressed optimism about South Africa’s potential in critical minerals essential for a low-carbon future, such as copper and rare earth elements.
“We’re in an industry where the world needs our products and South Africa is well endowed with mineral resources. These two intersect at the right point in time,” he said.
Despite these advancements, the Minerals Council has called for further improvements to the operating and regulatory environment.
