Minister Gwede Mantashe: Approval of Critical Minerals and Metals Strategy for South Africa and Draft Mineral Resources Development Bill

The Department of Mineral and Petroleum Resources (DMPR) welcomes Cabinet’s approval of South Africa’s Critical Minerals and Metals Strategy, as well as the approval for the publication of the Mineral Resources Development Bill (MRDB) of 2025 for public comments.

The approval of these two policy documents marks a major milestone in our concerted efforts that are aimed at ensuring policy and regulatory certainty, as well as maximising the country's potential in the global market for minerals.

Although the term “critical minerals” has been used by various nations for a considerable period, there has been no universal consensus on the definition of critical minerals, as several countries have interchangeably used and defined “critical, strategic or future minerals” according to their importance in: economic growth and industrialisation; technological advancements; energy transition; geopolitical considerations; supply chain vulnerabilities; environmental and social concerns; and strategic importance.

It is within this context that in 2023, we resolved at the African Critical Minerals Summit that Africa should develop a clear roadmap on how to maximise the exploitation and monetisation of these resources for value addition to our economies. At the centre of this road map is a shared vision for the critical minerals with which our continent is endowed and thereby foster regional cooperation and economic growth.

To realise this shared vision, the Department assigned Mintek the responsibility to coordinate the development of South Africa’s Critical Minerals Strategy with the intention to foster investment into exploration, beneficiation, building resilient local value chains, research and development, skills development and strengthening regional integration and international partnerships to position the country as a major player in the global critical minerals market.

The drafting of the strategy commenced with adopting a robust methodology to determine the aspect of criticality of minerals. This methodology was based on eight indicators including, inter alia, export potential, employment indicator, supply risk, export sales, domestic sales, and substitutability indicators. This focus ensured that minerals with the highest potential to drive economic and industrial growth are prioritised which then provided guidance in determining the criticality of specific mineral commodities.

At least, twenty one (21) commodity studies were undertaken in parallel with the work of determining the criticality of minerals. These commodity studies sufficiently provided a clear picture of the state of the mining industry in South Africa, as well as the contribution of each commodity to the country’s drive for inclusive economic growth, job creation, and poverty alleviation. Valuable inputs into these studies were also obtained from the industry, thus underscoring our collective approach to this important work.

Whereas every mineral is found to be critical for various reasons, the strategy has identified the following minerals as high-critical minerals for South Africa based on their criticality informed by the eight indicators: platinum, manganese, iron ore, coal, and chrome ore.

The strategy further identifies mineral commodities such as gold, vanadium, palladium, rhodium, and rare earth elements as minerals with moderate to high criticality. Minerals such as copper, cobalt, lithium, graphite, nickel, titanium, phosphate, fluorspar, zirconium, uranium, and aluminium were identified as minerals with moderate criticality.

The list will constantly be reviewed and updated as the criticality classification mix is dependent on underlying market conditions, exploration, technological advancement, substitutability, recycling, and geopolitics, among other factors.

Additionally, the strategy does not view critical minerals in isolation; instead, they are treated as part of a larger ecosystem that drives essential technologies such as electric vehicles, hydrogen fuel cells, wind turbines, battery storage systems, microelectronics and advanced manufacturing.

To this end, the strategy identified the following 6 pillars with targeted interventions for critical minerals development and beneficiation close to the point of production.

1. Geoscience Mapping and Exploration: The strategy recognises that mineral discovery is a function of exploration, and that geological mapping plays a vital role in identifying resource potential and directing efficient exploration efforts. The strategy, therefore, emphasises that South Africa must prioritise exploration to sustain its mining sector and for the success of this strategy.

2. Value Addition and Localisation: cognisant of the fact that value addition and localisation reduce reliance on foreign manufacturers, boost the Gross Domestic Product (GDP), creates jobs, and develop skills, the strategy advocates for strengthening local beneficiation and manufacturing to enhance economic growth, expand the export basket and create new opportunities.

3. Research and Development (R&D) Investment and Building a Diverse Skilled Workforce: The strategy further prioritises investment in strategic research and development to transform South Africa’s mineral wealth into globally competitive high-tech products, by leveraging on Africa’s resources and youthful population.

4. The strategy stresses investment in strategic Infrastructure and Energy Security for sustainable mining and downstream value addition.

5. Financial Instruments to support Beneficiation: the strategy stresses that a robust fiscal framework is essential to support this strategy, hence, it calls for a stable and competitive environment while aligning with broader geopolitical and economic objectives.

6. Harmonisation of Policy and Regulatory Instruments: the strategy recognises the urgency to implement policies that can provide an enabling environment for increased mining output and improved competitiveness.

To ensure policy and regulatory certainty and enhance investor confidence, the department has reviewed and proposed amendments to the Mineral and Petroleum Resources Development Act, 2002 (MPRDA). Mindful of the fact that a stable legal framework is essential to attract and retain investments, foster inclusive economic growth, and sustainable resource development, the Mineral Resources Development Bill (MRDB) of 2025 seeks to align mining legislation with evolving policies, economic conditions and global shifts while ensuring that it reflects current industry needs and government priorities.

The Bill proposes streamlining administrative processes to ensure proper alignment with National Environmental Management Act (NEMA) and the National Water Act (NWA), and thereby reduce bureaucratic inefficiencies and improve turnaround times for mining rights, permits, and regulatory approvals. The Bill further introduces a licensing regime for artisanal and small-scale mining operations, and in so doing formalise artisanal and small-scale mining operations, ensure compliance with environmental, safety, and labour regulations, as well as reduce the risk of illegal mining activities.

Having incorporated many of the issues raised with the department over a number of years, the department will gazette the Bill for public comments today, 20 May 2025. We, therefore, urge all citizens as well as interested and affected parties to enhance the Bill by submitting their inputs on the Bill to the Department.

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