Insufficient investment in advanced mineral exploration is impeding South Africa’s ability to leverage the global push for decarbonization. Mosa Mabuza, CEO of the Council for Geoscience, emphasized at a recent virtual conference that limited funding is hindering the country’s exploration potential, resulting in its meager 1% share of global exploration value, down from the previous 8%. Mabuza stressed the importance of investment in exploration today to secure the minerals crucial for achieving net-zero emissions globally.
Despite some progress, the current investment level falls short of positioning South Africa significantly in the global minerals market. This discrepancy is particularly puzzling given the country’s abundant geological resources, which include manganese, chrome, diamonds, platinum, coal, copper, and nickel.
Mzila Mthenjane, CEO of Minerals Council South Africa, highlighted the necessity for a comprehensive understanding of the country’s mineral landscape to effectively allocate capital for extraction, crucial for transitioning to a low-carbon future. Addressing infrastructure challenges is key to enabling the industry to thrive, with exploration playing a pivotal role in future growth.
However, securing funding alone isn’t sufficient; South Africa must also streamline administrative processes to create an enabling environment for exploration and mining. This entails aligning government departments, optimizing the cadastral system for efficient exploration application processing, and acknowledging the entrepreneurial nature of exploration endeavors.
Olga Savina, a mining and metals analyst at Fitch Solutions-run BMI, noted delays in implementing an online mining licensing system due to administrative hurdles. Nevertheless, the development of this system is anticipated to positively impact the mining sector outlook once implemented, potentially facilitating a much-needed shift in the industry.
