South Africa’s Minister of Mineral Resources and Energy Gwede Mantashe announced the launch of a new minerals exploration fund in Cape Town on Monday.
In collaboration with the Industrial Development Corporation of South Africa, the fund will be officially launched on February 6 and aims to encourage the exploration of lithium, coltan and phosphate in the Northern Cape, Kwa-Zulu Natal, Mpumalanga and Limpopo provinces. According to Minister Mantashe, discoveries of such minerals could result in the development of a new critical minerals strategy for South Africa.
“The South African mining industry has proved its resilience through its marginal but significant contribution to the country’s GDP in 2023, as evidenced in the first and second quarter statistics,” stated the Minister. “We have passed all the regulatory hurdles and approvals for the establishment of the fund.”
The announcement comes as high energy prices, inflation, lower commodity prices and logistical bottlenecks continue to hamper South Africa’s mining industry. As a result, the country’s Department of Mineral Resources and Energy (DMRE) has implemented a number of strategies to increase the sector’s contribution to GDP, including introducing a new mining license system to enhance efficiency and transparency.
Last June, South Africa established the National Energy and Logistics Crisis Committee to address shortfalls in domestic rail, port and road infrastructure, while its newly introduced 2023 Draft Integrated Resource Plan (IRP) has been made available for public comment.
Minister Mantashe stated that the DMRE intends to finalize the IRP later this year.
