Deputy Minister Phumzile Mgcina: London Indaba

Chairman of the London Indaba, Bernard Swanepoel
Ministers and Deputy Ministers present here
Members of Diplomatic Corps
Captains of Industries
Distinguished Guests

It is an honour to be participating in this year’s London Indaba under the theme “Why mining is critical to the future of Africa and Africa critical to the future of mining”.

This Indaba is convened at a time when the global race for critical minerals is accelerating. From lithium to rare earths, from vanadium to platinum group metals (PGMs), these minerals are the building blocks of the 21st century economy. Not only will these minerals power electric vehicles, energy storage, renewable energy systems, and advanced manufacturing, but they are poised to play a catalytic role in shaping a secure and prosperous future for the Africa We Want and the World We Want.

For its part, South Africa is determined to be an active and strategic contributor to this future not only for our own economy, but as a collaborative partner within Africa and the global community.

To enable this, our government has taken decisive steps by developing and putting in place the first of its kind, South Africa’s Critical Minerals and Metals Strategy.

This is not a vision on paper, it is an actionable blueprint that prioritises exploration, promotes local value addition, and emphasizes investment in strategic research and development.

Having been actively engaged in mining for over a century, the strategy recognizes that resource discovery is key to sustaining the mining industry for the foreseeable future. Hence, it emphasises increased investment in exploration and geological mapping.

Notwithstanding the significant drop in South Africa’s share of the global exploration spend, the South African government has initiated critical policy reforms, including the implementation of the Exploration Strategy to increase its share of the global exploration expenditure. The Council for Geoscience (CGS), with over 100 years’ experience in exploration and geological mapping, continues to play a central role in identifying resource potential and directing efficient exploration efforts.

For over a century, the South African mining industry has prioritised the pit-to-port approach to mining, consequently exporting jobs and profits that ought to accrue to the people of South Africa. To address this, the country’s critical minerals strategy promotes local beneficiation to enhance economic growth, expand the export basket, and create new opportunities. We continue to urge the investment community to embrace local value addition and thus ensure that South Africa not only supplies raw materials but also leads in the production of high-value products, and build a future filled with opportunities for all.

Increased investment in research, development, innovation, and in building a diverse skilled workforce is one of the 6 pillars identified by the strategy with targeted interventions for critical minerals development. This is more than an economic initiative, but a visionary leap into a future in which South Africa can meaningfully shape the global industry standards.

Given South Africa’s known reserves of, inter alia, PGMs with a market share of (88%), Manganese (80%), Chromite (72%) and Gold (13%), our nation is well-positioned to contribute meaningfully to the regional effort of building competitive value chains. We see beneficiation hubs and regional value chains as essential for shared African prosperity. South Africa offers established industrial capacity, advanced mineral processing expertise, and logistics networks that can connect our minerals to the global markets. We are committed to leveraging these strengths in partnership with our African peers to support not only South Africa’s development, but the continent’s collective progress.

As part of South Africa’s G20 Presidency, we have placed critical minerals at the heart of global cooperation. This gives us an opportunity to position developing countries, in particular in African countries, not merely as suppliers of raw materials, but as strategic partners in future value chains.

In keeping with South Africa’s critical minerals strategy, through the G20 Task Force on Critical Minerals, and the African Critical Minerals Ministers Roundtable, we are advancing collaboration on exploration and geological data, beneficiation at source, and responsible sourcing and sustainable investment frameworks.

To enhance investor confidence in the South African mining industry, we have initiated a comprehensive review of the existing mining regulatory framework. To this end, a draft Mineral Resources Development Bill (MRDB) of 2025 has been published for public consultation. To ensure policy and regulatory certainty, the Bill seeks to streamline and modernise licensing processes, enable faster turnaround for mining and prospecting rights, formalize artisanal and small-scale mining operations, improve competitiveness for junior miners and exploration companies, ensure compliance with environmental, safety, and labour regulations, as well as reduce the risk of illegal mining activities.

To enable greater investment in exploration, the Bill has further removed the requirement for broad-based economic empowerment on prospecting rights. South Africa is, therefore, open for investment.

We are ready to partner with all investors not only in the extraction of these minerals, but in building beneficiation capacity and in developing skills. We welcome partnerships that advance shared prosperity and support sustainable African industrialization.

In closing, let us work together to build a new era of mining; one that is sustainable, inclusive, and transformative.

I thank you.

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