South Africa's 130-year-old mining industry has seen a surge in revenue following the latest commodity bull market, but experts warn that the sector's future is threatened by a decline in exploration expenditure and policy challenges. In 2025, mining generated R814bn, making it the country's largest source of export earnings. However, the industry attracted only 1% of global exploration spending, raising concerns about its long-term sustainability.
The Joburg Indaba, hosted by Resources4Africa, highlighted the need for increased exploration expenditure to unlock South Africa's mineral wealth. Newmont CEO Natascha Viljoen emphasized that investment in exploration is crucial for mining growth in the country. She noted that while South Africa has overcome challenges such as load-shedding to attract investors, rebuilding trust and attracting capital will take time.
Anglo American CEO Duncan Wanblad expressed confidence in South Africa's mining industry, citing the company's R11.2bn investment in establishing a separation plant at Kumba Iron Ore's Sishen mine. However, he also emphasized the need for an efficient regulatory environment, including the implementation of a modern cadastral system to improve transparency and investor confidence.
Despite being one of the world's premier mining jurisdictions, South Africa's production levels are less than those achieved over 20 years ago. Minerals Council SA president Paul Dunne attributed this to a decline in exploration expenditure, which has decreased by 80% over the past two decades. He warned that this trend has significant implications for the country's economy and employment opportunities.
The department of mineral resources and energy is working to address some of the policy challenges, including the implementation of a single licensing platform. Deputy director general at the department of trade, industry and competition, Ntokozo Nzimande, said that the goal is to align the timelines for mining licences across various departments and improve the efficiency of the licensing process.
However, some stakeholders, including DA shadow minister for mineral resources James Lorimer, expressed concerns about the impact of "bad policies" on the industry. He cited the lack of accountability and excessive ministerial discretion as major challenges. In response, Nzimande highlighted progress made since 2018, including the establishment of an exploration fund and a critical metals strategy.
The mining industry's future in South Africa depends on addressing these challenges and improving the regulatory environment. Key stakeholders, including investors, policymakers, and industry leaders, must work together to ensure that the sector continues to contribute significantly to the country's economy. The implementation of a modern cadastral system and a single licensing platform are crucial steps towards achieving this goal.
Key points
- Exploration expenditure in South Africa has declined by 80% over the past two decades.
- The country attracted only 1% of global exploration spending in 2025.
- The mining industry generated R814bn in export earnings in 2025, making it the largest source of export earnings for South Africa.
