The Investing in African Mining Indaba conference officially kicked off today in Cape Town, setting the stage for significant discussions on the future of mining across the continent. The event is expected to focus heavily on community involvement and address the pressing challenges faced by the mining industry, particularly the tightening access to financing for miners, especially those operating within the developing markets of Africa.
Wildu du Plessis, partner at Alchemy Law Africa, highlighted during the conference’s opening remarks, "Access to financing has become increasingly restrictive for miners, particularly affecting operations here in South Africa and other African nations." This sentiment resonates with many attendees who are searching for solutions to sustain and grow the sector.
Mzila Mthenjane, the CEO of the Minerals Council South Africa, delivered insights on the current pressures within the South African mining industry. The sector has been grappling with lower commodity prices for non-gold minerals, alongside persistent logistical challenges. The conference was informed by Mthenjane's report on the industry's performance which noted only marginal improvements in real mining production during 2024, following the easing of mining load curtailment at the end of March of this year.
According to the Minerals Council’s annual Facts and Figures 2024 booklet, the mining industry directly contributed 6% to South Africa’s nominal gross domestic product (GDP) within the first three quarters of 2024, slightly down from 6.3% the previous year. The sector exported goods valued at approximately R800 billion, amounting to 45% of South Africa’s total merchandise exports. Mthenjane stated, "These meaningful contributions once again highlight the importance of mining to the South African economy. If we can make progress on lifting the remaining constraints on mining, the sector could greatly contribute to economic growth and social upliftment."
Within the same period, mining provided direct employment to 471,882 individuals. Despite these contributions, the sector faced challenges, with nearly 12,000 jobs lost largely due to retrenchments within the pressured platinum group metals (PGMs) sector. Nonetheless, mining maintained its position as accounting for 4.5% of total formal sector employment.
It was also revealed at the Indaba this week, the Minerals Council anticipates significant milestones for 2025, which includes the launch of the new online mining cadastre system expected to be operational by June 2025. Mthenjane noted the importance of this new system, saying, "It will feature modern, transparent management of mineral rights and exploration licenses, driving efficiency and potentially boosting investor confidence."
An additional focus for 2025 includes the publication of South Africa's strategic plan for 'critical minerals', along with the next iteration of the Minerals and Petroleum Resources Development Act (MPRDA). Hugo Pienaar, chief economist at the Minerals Council, emphasized the need for these developments saying, "It is imperative to maintain and create conducive policies for mining to attract necessary investments, facilitate mineral extraction, and stimulate the economy."
The current Indaba also serves as the backdrop for broader discussions about South Africa’s role internationally, especially as it prepares to host the G20 summit later this year, which will include discussions among business leaders focused on market opportunities, regulatory changes, and collaborative efforts to advance the mining sector.
Mineral and Petroleum Resources Minister Gwede Mantashe is representing President Cyril Ramaphosa at the Mining Indaba, having stepped up to deliver the keynote address. Mantashe underlined the importance of the Indaba as key stakeholders gather with the aim of future-proofing Africa’s mining industry.
Since its inception back in 1994, the Investing in African Mining Indaba has grown to become the premier meeting place for mining professionals, investors, and industry leaders eager to explore the endless opportunities within Africa's vast and rich mining sector. With the focus now more than ever on community engagement and sustainable practices, leaders hope to navigate the industry's hurdles and leverage its capabilities for broader societal gains.
The discussions at this year’s Indaba come at a pivotal time amid rising global scrutiny and demands for responsible mining practices. With mounting financial constraints and environmental responsibilities, stakeholders will need to innovate and collaborate to shape the future of mining on the continent.