Posted on 26 Jun 2025
South Africa says its new critical minerals strategy will ensure it “stays competitive” by bringing back domestic processing, Kallanish reports.
The strategy, which was launched last month and is open for comment until 8 August, is intended to attract investment in the sector, especially in exploration, developing geoscience data, boost innovation, and strengthen partnerships both at home and abroad. It identifies minerals such as manganese, coal and iron ore as highly critical, rare earths as moderately to highly critical, while copper, cobalt, lithium, graphite, and nickel are deemed moderately critical.
The list of critical minerals is due to be reviewed regularly based on a series of factors, including underlying market conditions and substitutability. Phumzile Mgcina, deputy minister of mineral and petroleum resources, said at Indaba London attended by Kallanish on Wednesday that this strategy will “position the country as global leader in the space.”
A major challenge faced by South Africa is having to export most raw materials following the closure of several smelters due to an unstable electricity supply. The government plans to collaborate with the private sector to come up with a solution that would attract domestic processing, while collaborating with investors to raise the capital to stabilise the grid.
Even though 85% of the country’s electricity comes from coal, a government representative says that “it doesn’t mean South Africa wants to pursue coal at all costs” and it is trying to “honour the commitments” made under the Paris Agreement.
Source:Kallanish
