South Africa faces seventh year of declining mineral exploration investment

South Africa’s investment in mineral exploration has dropped for a seventh consecutive year, despite government ambitions to reverse the decline. While the country remains Africa’s largest exporter of mineral products, companies are allocating smaller amounts to prospecting, critical for identifying and defining the mines of the future.

Exploration capital is increasingly flowing to nations like Zambia and the Democratic Republic of Congo, leaving South Africa struggling to compete for investment on the continent. According to data released this week by the government’s statistics agency, exploration spending fell 5.3% to R738 million ($43.9 million) in 2025, measured in 2015 constant prices. Over the past three decades, investment in prospecting has slumped by more than 85%.

Highlighting the gravity of the situation, Minerals Council South Africa, the mining sector’s main lobby group, recently described exploration as the industry’s “lifeblood”. The organisation, whose members include Valterra Platinum, Harmony Gold and Exxaro Resources, added that dwindling investment “is deeply troubling for our sector and it needs urgent attention.”

A recent paper from Economic Research Southern Africa notes that an underdeveloped junior mining and exploration industry is contributing to the “effective collapse of the sector’s project pipeline.” The study suggested that the government could revive prospecting by offering tax rebates, creating a transparent database of available mining rights, and increasing funding for geological mapping.

In response, the Department of Mineral and Petroleum Resources published a new strategy last year prioritising a restoration of South Africa’s share of global exploration spending to 5%, up from current levels below 1%.

Despite concerns over declining exploration, South Africa continues to be a leading producer of multiple commodities, including coal, gold, iron ore, manganese, chrome, and platinum-group metals. Total mineral sales rose 7.3% last year to R861 billion, demonstrating the enduring strength of the country’s mining sector.