As the world pivots towards cleaner energy solutions, South Africa’s mining sector stands at a crucial crossroads. With vast reserves of essential minerals, the country is poised to play a vital role in the transition to alternative energy resources like renewable energy, while grappling with its own energy crisis.
The push for clean energy is driven by the need for decarbonization and the declining costs of renewable sources like solar and wind. South Africa is rich in critical minerals, holding over 90% of the world’s platinum group metals (PGMs), and a significant reserve of cobalt, manganese, and natural graphite. These resources are essential for producing materials used in batteries, solar panels, and other technologies that support the renewable energy landscape.
“South Africa’s mining industry not only has the potential to support global clean energy initiatives but is also crucial for our own energy security,” said Vice President of Hibarri, Cherrylee Samson.
“Balancing regulation and investment are key to ensuring we maximize the benefits of our mineral wealth while promoting sustainable practices,” said Samson.
Currently, South Africa’s mining industry confronts various obstacles. Primarily, it consumes substantial energy, and the government can no longer afford to allocate its energy resources across multiple sectors.
As the government aims to satisfy both domestic and foreign market demands, it must carefully manage the regulatory environment. An overly strict approach could discourage investment, while a hands-off policy might lead to exploitation. The implications are significant, as this sector plays a crucial role in the country’s gross domestic product (GDP) and export revenues.
It is worth noting that South Africa’s highly integrated mining supply chain provides inputs for various manufacturing sectors, including metal fabrication, automotive, and jewelry production.
Furthermore, South Africa is home to the Witwatersrand Basin, which contains the world’s largest gold deposit, having yielded over two billion ounces of gold to date. The country continues to host The Wits School of Mining Engineering at the Witwatersrand University in Johannesburg, recognized as one of the world’s top mining engineering institutions. In 2018, the school led Africa in mining engineering education and ranked among the top 15 globally.
The mining and mineral beneficiation industries have the potential to significantly contribute to economic growth, job creation, transformation, and infrastructure development, aligning with the government’s goals for inclusive growth.
Given this potential, numerous sector-specific and general support programs and initiatives are in place to bolster the industry; firstly, the National Incentive Programmes including Manufacturing Competitiveness Enhancement Programme (MCEP), Capital Projects Feasibility Programme (CPFP), 12I Tax Allowance Incentive, Global Business Services (GBS) Incentive, Critical Infrastructure Programme (CIP) and Black Industrialist scheme (BIS).
Furthermore, the Skills Development Support through Mining Qualification Authority skills training, Department of Mineral Resources internships and bursaries, Universities and Technical and Vocational Education and Training (TVET) colleges offering courses in mining engineering, artisan, geology, etc.
In addition is the Special Economic Zones: OR Tambo Special Economic Zone (SEZ) (Gauteng) and Makhado SEZ (Limpopo) support precious metals and minerals beneficiation. Bojanala SEZ (North West Province) is earmarked for platinum group metals beneficiation.
Lastly other support programmes include Support Programme for Industrial Innovation (SPII), Technology and Human Resources for Industry Programme (THRIP), Workplace Challenge Programme (WPC), Department of Mineral Resources Small Scale Mining (DMR SSM) support programme and African Mining Partnership (AMP).
At the ICS2025 summit, the Renewable Energy Future panel discussion will convene industry leaders, policymakers, and innovators to address the needed energy transition.
The dialogue will explore the economic opportunities that arise from the shift towards renewable energy, the emerging industries that will drive demand for critical minerals, and the implications of inaction toward renewables.
“As we strategize for a sustainable future, it is imperative to consider how Africa’s mineral wealth can be harnessed for collective growth.”
“We must address the challenges of conflict minerals and ensure responsible sourcing to strengthen our position in the global market,” said Samson.
The summit will tackle important questions regarding the impact of renewable energy on global supply chains and the economic implications for African nations. With the right strategies, South Africa can emerge as a leader in the green transition, leveraging its abundant resources to foster economic growth and job creation. For further information on The International Commodity Summit 2025, including registration details, sponsorship opportunities, and the full agenda, please visit [https://internationalcommoditysummit.com/].