South Africa must invest in new mineral exploration to sustain its mining industry, according to Minister of Mineral and Petroleum Resources, Mr Gwede Mantashe.
Presenting his department’s Budget Vote in a mini-plenary of the National Assembly, Minister Mantashe warned that the long-term viability of the sector depends on discovering new mineral reserves. He announced that the government has already taken steps in this direction, including the establishment of the Junior Mining Exploration Fund.
Funded by a R200 million allocation from the National Treasury – matched by the Industrial Development Corporation (IDC) – the initiative is designed to unlock new mineral discoveries and transform the sector. “As the country navigates the natural decline of legacy commodities like gold, this fund will enable the discovery of new minerals that are essential for a range of industries, from advanced manufacturing to technology and infrastructure development. Expanding this fund is not just an investment in new mining frontiers but a commitment to ensuring that our mineral wealth contributes to a more inclusive and transformed industry,” said Mr Mantashe.
The Minister also confirmed that the Council for Geoscience will continue to seek funding partnerships to boost exploration efforts in South Africa to “unprecedented levels”.
Mr Mantashe outlined five core priorities guiding the department’s work, aligned with the National Development Plan (NDP) Vision 2030, the Medium-Term Strategic Framework, and South Africa’s re-industrialisation goals:
1) Promoting investment in the mining and petroleum sectors by ensuring a predictable, enabling policy and regulatory environment.
2) Accelerating transformation by broadening participation of historically disadvantaged individuals.
3) Ensuring environmental sustainability, including stricter compliance and rehabilitation of derelict and ownerless mines.
4) Advancing regional integration by leveraging bilateral and multilateral partnerships.
5) Strengthening institutional capacity through better governance, operational efficiency, and the use of modern technology.
The Minister said the department’s 2025/26 budget aims to enable efficient regulation of both sectors while promoting transformation, inclusive growth and sustainable development.
Opposition Reactions: Praise, Caution and Criticism
The Chairperson of the Portfolio Committee on Mineral and Petroleum Resources, Mr Mikateko Mahlaule (ANC), backed the budget and urged swift approval of the Department of Forestry, Fisheries and the Environment’s decision on shale gas exploration. “We urge a swift resolution as shale gas could be a game changer for our energy mix and industrial development,” he said.
He highlighted the mining sector’s potential to drive both industrialisation and inclusive growth. “Mining is a significant sector in the South African economy; however, its potential extends far beyond extraction – it is the hope of communities for change and economic empowerment,” he said.
Mr Mahlaule welcomed the department’s 23 targets for 2025/26, including: 10 000 jobs enabled through mining rights,1 200 jobs via petroleum licences, 200 rights and permits prioritising historically disadvantaged South Africans, and financial support for women and small-scale miners.
He also expressed optimism about the upcoming petroleum sector development plan and the operationalisation of two additional refineries by 2030.
Mr Lehlohonolo Selepe of the uMkhonto weSizwe Party rejected the budget, accusing the department of gatekeeping rather than redistributing mineral wealth. “Only 200 mining rights to historically disadvantaged South Africans in the sea of thousands – that is not redress but racial window-dressing. Even worse, just three small-scale miners and three women were financially supported in a country crying out for grassroots beneficiation,” Mr Selepe said.
He also criticised the department for failing to prosecute mining companies over miner deaths, act against water contamination and address harmful blasting near communities.
Mr Sphesihle Zondi (Democratic Alliance) questioned the Minister over the 2020 announcement to establish a new state petroleum company via the merger of PetroSA, the South African Gas Development Company and the Strategic Fuel Fund. He said that since the announcement, the bill that would provide for the establishment of the company has not been passed yet the Minister went ahead to commission a launch of the company.
“South Africa does not need another state company. Government needs to ensure that PetroSA is financially viable instead of abandoning it for the next shiny thing,” he said.
Mr Zondi alleged that PetroSA remains operational only due to selling diesel to Eskom at “suspected hyper-inflated rates”, and raised concerns over creditors’ rights being ignored in the planned asset reassignment.
Ms Nqobile Mhlongo (Economic Freedom Fighters) dismissed the budget as failing to address urgent problems in the sector. “There is no immediate solution to the problems of mineworker safety, no plans to deal with contaminated fuel, and no solution to resolve the crisis of unregistered mines – many of these mines are active but the owners are not known. Some owners abandoned them without fulfilling their legal obligations to rehabilitate the land,” she said.
She also called for the employment of more mining inspectors to prevent companies from cutting corners at the cost of lives, the environment and the economy.
IFP: Mineral Wealth Still Not Shared
Ms Nompumelelo Mhlongo of the Inkatha Freedom Party criticised the ongoing inequality and lack of beneficiation despite South Africa’s rich mineral resources. “Despite South Africa’s abundant natural mineral resources, it remains the most unequal country in the world. The benefits of the vast resource base have not translated into shared prosperity for the majority of the population.
“Instead, historical patterns of exclusion, accompanied by weak governance, limited beneficiation and structural inequalities have meant that wealth continues being concentrated in the hands of a few while millions remain trapped in poverty,” she said.
Sakhile Mokoena
8 July 2025
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