Mining sector backs Industrial Development Strategy but calls for faster reforms

South Africa’s mining industry has welcomed the country’s Industrial Development Strategy (IDS) 2026, describing it as an opportunity to strengthen the sector’s contribution to economic growth, industrialisation and job creation. However, industry leaders say the strategy’s success will depend on the pace of reforms and effective collaboration between government and business.

Speaking at the launch of the IDS 2026, Minerals Council South Africa CEO Mzila Mthenjane said the mining industry remains a cornerstone of the country’s economy and is well positioned to support inclusive industrial development.

“The mining sector has a critical role to play in advancing South Africa’s industrialisation ambitions and driving inclusive economic growth,” Mthenjane said.

He noted that mining’s impact extends far beyond the extraction of minerals, supporting manufacturing, logistics, engineering services and technology development across the value chain. He said this broader ecosystem creates significant opportunities for investment, employment and local economic development.

Mthenjane emphasised that South Africa’s rich endowment of critical minerals places the country in a strong position to benefit from the global energy transition. Demand for minerals used in renewable energy technologies, electric vehicles and battery storage continues to grow, presenting opportunities for increased exploration, beneficiation and downstream industries.

To capitalise on these opportunities, he stressed the need for a stable and predictable policy environment that gives investors confidence to commit long-term capital to new mining projects. Regulatory certainty, efficient licensing processes and consistent implementation of reforms, he said, remain critical to attracting investment.

Infrastructure was identified as another priority. Mthenjane said improving the performance of rail, ports, electricity and water infrastructure is essential to unlocking production and export capacity. Ongoing logistics constraints continue to limit the sector’s ability to reach international markets and maximise the value of South Africa’s mineral resources.

“We need reliable infrastructure, policy certainty and strong partnerships between government, business and labour to unlock the full potential of the mining industry,” he said.

He also highlighted the importance of partnerships between government, organised business and labour in addressing shared challenges. Recent collaboration on logistics, energy and crime prevention has demonstrated that collective action can deliver meaningful progress.

Skills development and innovation were also identified as key enablers of future growth. As mining becomes increasingly technology-driven, investment in research, digital technologies and workforce development will be necessary to improve productivity while ensuring workers are equipped for the changing demands of the industry.

Mthenjane said responsible mining practices remain central to the industry’s long-term sustainability. He reiterated the sector’s commitment to improving environmental performance, supporting host communities and advancing transformation while maintaining global competitiveness.

Looking ahead, he said the IDS 2026 provides a framework for building a more resilient and competitive mining sector. By accelerating reforms, strengthening infrastructure and fostering closer collaboration between the public and private sectors, South Africa can unlock greater value from its mineral resources while supporting broader economic development.

The Minerals Council believes the country’s mineral wealth, combined with decisive implementation of reforms, can position mining as a key driver of industrial growth and long-term prosperity.