Mining takes centre stage in South Africa’s green growth strategy

South Africa’s mining sector has emerged as a cornerstone of government’s green growth agenda, with renewed focus on critical minerals, exploration, and industrial beneficiation.

Delivering the State of the Nation Address at the Cape Town City Hall, President Cyril Ramaphosa outlined how the country’s vast mineral wealth will power both economic recovery and the global energy transition.

“The biggest opportunity of all lies in green growth. We are pivoting our economy to be a leading supplier of the products that the world will rely on in decades to come.

“We are expanding support for the manufacturing of green products for global markets, from fertiliser to jet fuel, chemicals to steel.

“From March this year, we will introduce a 150% tax deduction for investment in new energy vehicles, while supporting the local production of batteries,” the President said.

While the incentives for electric vehicles and battery production signal industrial reform, they are equally significant for mining. The demand for battery minerals, platinum group metals, and rare earth elements places South Africa’s resource base at the centre of global clean energy supply chains.

R250 Billion Just Energy Transition Boost

The Just Energy Transition Investment Plan now stands at approximately R250 billion, financing “large scale investment in manufacturing, infrastructure and skills”.

For the mining industry, this signal expanded infrastructure development, modernised logistics and enhanced beneficiation capacity. These are critical components in unlocking mineral value locally rather than exporting raw materials.

Mineral Endowment Positions Mining as a Sunrise Industry

South Africa remains a continental leader in renewable energy potential, but it is the country’s mineral reserves that provide a decisive competitive edge.

“Our ore reserves are valued at more than R40 trillion, making mining a sunrise industry.

“After many years of declining investment in exploration, we are dedicating funds towards geological mapping and exploration to harness our critical mineral reserves,” President Ramaphosa said.

The renewed commitment to geological mapping and exploration funding marks a strategic shift after years of underinvestment. Exploration is widely regarded as the lifeblood of mining sustainability, ensuring pipeline projects and long-term resource security.

In a significant development, the Industrial Development Corporation has announced at least R300 million in funding for the Frontier Rare Earths Project.

“This has the potential to become one of the world’s largest and lowest cost new producers of minerals that are needed for smartphones, lithium batteries, and other products.

“Confidence in the future of South African mining was very evident during the Mining Indaba this week here in Cape Town. New gold, copper, rare earths, platinum, and coal mines are being opened,” the President said.

The reference to renewed activity at the Mining Indaba highlights growing investor confidence in South Africa’s resource potential. New mine developments across gold, copper, rare earths, platinum, and coal signal a broader sector revival aligned with global commodity demand.

Mining at the Heart of the Energy Transition

As global economies accelerate decarbonisation, critical minerals are becoming strategic assets. South Africa’s platinum group metals are essential for hydrogen technologies, while rare earths and battery minerals underpin electric mobility and renewable energy systems.

Government’s integrated approach combining green industrial policy, exploration funding, and investment incentives positions mining not only as a legacy industry, but as a future facing growth engine.

With ore reserves valued at more than R40 trillion and renewed exploration momentum, South Africa is seeking to transform its mineral endowment into sustained economic expansion, job creation, and global competitiveness.