This announcement was made by Minister of Mineral and Petroleum Resources, Gwede Mantashe, during his Budget Vote 34 speech. Mantashe outlined the government’s broader strategy to strengthen the mining sector amidst ongoing global economic and geopolitical uncertainty.

He described the investment as a strong vote of confidence in South Africa’s mining future, indicating a growing collaboration between the government and the private sector to enhance exploration activities.

“We are pleased to share that this government-led program has sparked great interest from industry stakeholders, with Anglo American being the first to pledge R600 million to the fund, increasing its total size to R1 billion,” said Mantashe.

Initially, the JMEF was capitalised at R400 million through a partnership between the Department of Mineral and Petroleum Resources and the Industrial Development Corporation (IDC). The fund was established to support junior miners and address long-standing barriers to entry in the exploration sector.

According to Mantashe, the program is already yielding tangible results, with 13 exploration projects currently underway across the country. Among these is a rare earth elements exploration initiative in Bothaville, Free State, where drilling has been completed, and results are being interpreted and modelled in 3D. Another project in Giyani is focused on copper, nickel, and gold deposits.

The government is now seeking to further scale exploration investments through the Public Investment Corporation (PIC), which has committed R1.35 billion to exploration activities. “Building on the momentum of the JMEF, we are significantly increasing our efforts with the landmark R1.35 billion commitment made by the Public Investment Corporation for exploration activities,” Mantashe stated. He added that this allocation would serve as a continuation fund to support projects emerging from the JMEF pipeline.

The minister’s remarks come as South Africa intensifies its efforts to position itself as a strategic supplier of critical minerals necessary for the global energy transition while simultaneously reigniting local mining investment and exploration activities.

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On Friday, May 15, Exxaro Resources officially launched its new Mine 1 operation at the Matla Coal Mine in Mpumalanga.

The mine, which was previously closed in 2016 due to deteriorating safety pillars near critical shaft infrastructure, has now been redeveloped as part of the company’s long-term strategy to sustain production, improve operational efficiency and contribute to South Africa’s energy security.

New Mine 1 forms part of the broader Matla Life of Mine Project (MLOMP), a major R5.236 billion investment aimed at ensuring safe and continued access to remaining coal reserves. The project is also designed to improve productivity and maintain a reliable coal supply under the recently extended Coal Supply Agreement (CSA) with Eskom.

“The new Mine 1 is far more than an operational milestone. For us, it reflects Exxaro’s disciplined execution, long-term vision and commitment to South Africa’s future. Our Matla Mine continues to play a vital role in supporting the country’s energy needs while creating meaningful impact through local investment, job creation and the development of entrepreneurship,” said Ben Magara, CEO of Exxaro Resources.

“Most importantly, this milestone reflects the commitment and resilience of our employees, whose dedication continues to enable us to deliver complex projects on time, within scope and on budget, while making a meaningful contribution to the country and its communities,” he added.

Minister of Mineral and Petroleum Resources Gwede Mantashe also reflected on his personal history with the mine during the launch.

“This is a journey back home for me. I spent six years at this mine, working and organising here, and during that period, we achieved production records. I was here as a worker, and today I return as a Minister,” Mantashe said.

Addressing ongoing debates around the future of coal, Mantashe noted that while the industry has faced criticism over environmental concerns, it continues to evolve through improved mining safety standards and ongoing investment in innovation and research.

“Coal miners should never be ashamed of the work they do,” he said.

Since the redevelopment project began, approximately 1,132 local employment opportunities have been created, further highlighting the project’s economic impact on surrounding communities in Mpumalanga.

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