Deputy mineral and petroleum resources minister Phumzile Mgcina says the newly launched exploration fund announced by the department is making its mark in mining areas including the Free State and Northern Cape.
The Junior Mining Exploration Fund (JMEF) demonstrates that the work of the government is pointing to significant untapped mineral potential, “reinforcing that South African mining is a sunrise industry”, she said.
“We are encouraged by the response to the fund. Commitments have grown to more than R2bn, marking a significant increase from the initial R400m contributed by the department and the Industrial Development Corporation.”
She was speaking to delegates at the Investing in African Mining Indaba in Cape Town on Tuesday morning. The indaba comes amid a rally in the gold price as well as increasing demand for commodities such as copper and manganese, which Africa is strategically placed to supply globally.
She said the Council for Geoscience (CGS) is the implementing entity — mandated to quantify the inherent value of South Africa’s mineral wealth across a range of strategic mineral commodities, with multiple projects under the JMEF advancing.
“One such project in Bothaville, Free State, has advanced into an intensive drilling phase targeting rare earth elements and associated minerals. In addition, two projects in the Northern Cape are scheduled to commence drilling this year, while at least four other projects are in the early stages of mapping and acquiring geophysical and geochemical datasets.”
During his opening address to the indaba on Monday, mineral and petroleum resources minister Gwede Mantashe said the government recognised that exploration is the lifeblood of South Africa’s mining sector.
“For this reason, we have removed the requirement for black economic empowerment participation at the prospecting stage. This is not a retreat from transformation, nor is it an endorsement of the misguided view that black participation is a barrier to economic growth,” he said.
“It is rather a pragmatic recognition that prospecting is a high-risk phase where no economic value has yet been proven. This change is designed to stimulate exploration, increase South Africa’s global share of exploration investment and ultimately expand the pipeline of future mines.”
He said the CGS launched the virtual core library to transform how geological data is accessed, shared and used, making South Africa a more attractive destination for exploration investment.
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