OPINION | The year 2025 promises a brighter future for junior miners in SA

As the new year of 2025 begins, the mining sector remains a cornerstone of SA’s economy, making a significant contribution to national GDP, employment and foreign exchange earnings.

Contributing 6.3% to the GDP, the sector generated total primary sales of R793bn last year, demonstrating its pivotal role in economic activity. Mineral exports, valued at R781.6bn, highlight mining’s importance in bolstering the country’s trade balance and attracting global investment. This is despite the decline the sector has been experiencing in recent years. 

In 2023, the mining trade provided direct employment to almost half a million people in SA. The largest employer among all mineral commodities was the platinum group metals (PGMs), which employed more than 38% of the total. In terms of production volume, PGMs were also SA’s largest produced commodity over the past decade.

Despite these strides, the industry has yet to see significant recovery, hampered by infrastructural challenges, illegal mining and an unfavourable economic climate, worsened by the dark period of load-shedding.

The prevailing challenges facing the mining industry require a strong voice for small-scale mining. This voice must champion junior mining interests and advocate for meaningful reforms to unlock its vast potential, propelling the country into its next phase of mineral production and exploration.

Aptly, we have ended 2024 on a high note and our spirits are still high, thanks to the South African High Commission, department of trade, industry and competition, jointly with the Federation of Indian Chambers of Commerce and Industry, India-South Africa Chamber of Commerce, and the Industrial Development Corporation, for organising the Business Conclave on December 2 in New Delhi and December 5 in Mumbai.

The Business Conclave targeted priority sectors in high-growth markets as well as sectors holding significant potential, to create export opportunities, increase market penetration of South African exports, and promote SA as an investment destination. The delegation consisted of 38 companies, industry associations, SEZs, and municipalities.

One of the year’s most notable events was the Saudi-South African Business Forum, held in October at the Sandton Convention Centre.

The forum highlighted the critical need for government support in bridging the gap between small-scale miners and major mining corporations. If SA is to compete on a global scale, junior miners must remain a national priority. The JMC’s support for Transnet’s strategic plan to allocate rail and port capacity to emerging black miners further reinforces the urgency of investing in infrastructure to enable growth.

The launch of the R400m Junior Mining Exploration Fund was another significant milestone in 2024. This initiative reflects an understanding that junior miners are not only vital to the future of mining but also central to driving economic inclusion.

The R400m is a good starting point, but the industry requires more funding for exploration and both the government and private sector must allocate significant resources to make this a success.

However, the broader industry must confront a stark reality: unless exploration activity ramps up significantly, SA risks running out of new projects to replace ageing mines. This is an issue we cannot afford to ignore if we want to maintain our standing in the global mining arena and if we are to address the triple threat of unemployment, inequality and poverty.

As the sector celebrated its achievements, a darker issue loomed large – illegal mining. Last year to this point, the nation has been shocked by the plight of thousands of miners trapped in abandoned mines. While the rescue efforts under Operation Vala Umgodi deserve commendation, they also serve as a stark reminder of the systemic challenges facing our industry.

Combating illegal mining demands a top-down approach. Arresting miners at the bottom of the chain addresses symptoms, not the cause.

As we step into the new year, we expect the mining cadastre system to be online by June. The industry is looking forward to big projects coming up in Limpopo and Northern Cape which are expected to bring more employment and revenue.

The 2025 Mining Indaba’s theme, “Future-Proofing African Mining, Today,” is expected to set a tone for a transformative era.

Junior miners must seize this momentum. They represent the future of SA’s mining industry –a future that promises both challenges and immense opportunities in 2025 and beyond.

* Arendse is the president of the Junior Mining Council.