South African mining poised for growth as exploration momentum builds, says Mgcina

South Africa’s mining sector is firmly back on an upward trajectory, according to Deputy Minister of Mineral and Petroleum Resources Phumzile Mgcina, who has reiterated government’s confidence in the industry’s future and its growing exploration momentum.

The Deputy Minister was speaking at the South Africa Exploration Investment Forum, held alongside the Investing in Africa Mining Indaba in Cape Town, where she highlighted renewed exploration activity, increased funding commitments and the role of digital innovation in unlocking the country’s mineral potential.

“The Council for Geoscience (CGS) is our implementing entity – mandated to quantify the inherent value of South Africa’s mineral wealth across a range of strategic mineral commodities. This work is already pointing to significant untapped mineral potential, thus reinforcing our message that South African mining is a sunrise industry.

“That is not being theoretical but realistic. This is being demonstrated through the success of projects supported under the Junior Mining Exploration Fund (JMEF),” Mgcina said.

From Exploration Funding to Discovery

The Junior Mining Exploration Fund forms a key pillar of South Africa’s mineral exploration strategy, aimed at attracting investment, stimulating new discoveries and reigniting mineral development across the country. The initial application window saw approximately R160 million allocated to qualifying projects, while the second funding round has already attracted strong interest, with 80 applications received.

Mgcina highlighted several projects that are already showing tangible progress. One initiative in Bothaville in the Free State has moved into an intensive drilling phase targeting rare earth elements and associated minerals.

In the Northern Cape, two projects are scheduled to begin drilling this year, while at least four additional projects are in the early stages of geological mapping and the acquisition of geophysical and geochemical data.

“Together, these projects confirm that South Africa’s subsurface potential is, indeed, far from fully understood and realised,” she said.

Beyond project activity, the fund itself has generated strong confidence among investors. Commitments linked to the JMEF have grown significantly, reaching more than R2 billion, a substantial increase from the initial R400 million contributed by the department and the Industrial Development Corporation.

“Equally encouraging is the level of interest of the people, with the second round attracting 80 applications targeting a diverse range of minerals, including Tin, Tungsten, Titanium, Uranium, Gold, Antimony, Arsenic, Fluorspar, Copper, and Lithium,” Mgcina noted.

Despite the progress, the Deputy Minister emphasised that sustained exploration investment remains critical.

“Notwithstanding this progress, we continue to urge industry partners and investors to partner with us by investing in exploration as the lifeblood of a sustainable mining sector,” she said.

Mgcina also pointed to the launch of the Council for Geoscience’s Virtual Core Library as a major step forward for the industry. She described the initiative as a “strategic national asset designed to transform how South Africa extracts value from its geological assets”.

“This initiative is poised to advance our mining industry into an era of digital transformation. By enabling the digital preservation and analysis of historical drill core, the library will fast-track exploration decision-making, reduce costs, and enhance South Africa’s competitiveness as an exploration destination.

“The platform further promises lower barriers to entry for junior and emerging explorers, as well as revitalise interest in underexplored regions. Most importantly, it safeguards our geological heritage while stimulating new exploration activity,” Mgcina said.