Mantashe Calls for Local Beneficiation as China-South Africa Mining Relations Deepen
In his recent address at the 26th China Mining Conference and Exhibition in Tianjin, South Africa’s Minister of Mineral and Petroleum Resources, Gwede Mantashe, highlighted the enduring and evolving relationship between South Africa and China in the mining sector. Speaking under the theme “Promoting Mining Cooperation for a Better Future,” Mantashe emphasized that China remains a vital partner for South Africa’s mining industry, not only as a major market for raw minerals but also as a potential ally in developing local beneficiation and value-added manufacturing.
Mantashe underscored the strong diplomatic and trade relations between South Africa and China, which have been deepened through frameworks like the Forum on China-Africa Cooperation (FOCAC). He noted that despite political changes following the 2024 national elections in South Africa, the partnership with China remains resilient. President Cyril Ramaphosa’s words at the FOCAC summit were recalled by Mantashe, reaffirming the long-standing “friendship and solidarity” between the two nations and the shared mission of economic development and modernisation.
The Minister’s remarks also focused on the “State of Mining” study and the draft “Critical Minerals Strategy,” which dispel any notion of South Africa’s mining industry as a “sunset industry.” Instead, Mantashe argued, it is a “sunrise industry” poised to be a global leader in the production of diverse critical minerals such as platinum group metals (PGMs), chrome, manganese, and rare earth elements. South Africa’s established status as the world’s largest producer of PGMs, including platinum, rhodium, and palladium, positions it as a pivotal player in the global green energy transition, especially as demand rises for cleaner technologies, electric vehicles, and hybrid solutions.
Moreover, Mantashe pointed out that China is the largest importer of South African manganese and chrome, resources essential for automotive and construction industries worldwide. This dependency provides substantial opportunities for South Africa to collaborate with Chinese investors in promoting local beneficiation and reducing reliance on raw mineral exports. By investing in processing technologies and facilities within South Africa, Chinese companies could contribute to local job creation, economic growth, and skill development, Mantashe suggested.
The coal sector, too, remains integral to South Africa’s economy, with the nation ranking among the top ten coal producers worldwide. Mantashe acknowledged global pressures to reduce coal dependence but expressed optimism in carbon capture and storage projects that aim to lower emissions and extend coal’s role in energy production. He invited Chinese investors to support South Africa’s initiatives in sustainable coal production and energy security.
Mantashe also addressed the regulatory framework governing mining in South Africa, noting its stability since the Mineral and Petroleum Resources Development Act (MPRDA) in 2002 and the Mining Charter of 2004. This regulatory environment has facilitated significant Chinese investments, such as Gold One International’s operations in the East Rand goldfields, Sinosteel’s partnership with Samancor in chrome beneficiation, and Jinchuan Group’s investment in Wesizwe Platinum. The Minister reiterated South Africa’s commitment to a transparent, investor-friendly regulatory framework, citing recent updates to streamline the licensing process and improve logistical infrastructure, notably in energy and transport.
Closing his address, Mantashe invited Chinese stakeholders to invest in South Africa’s junior mining sector through a newly established R400 million exploration fund and extended an invitation to the upcoming 31st Investing in African Mining Indaba. By strengthening this partnership, Mantashe expressed hope for a shared, sustainable future that capitalizes on the mineral wealth and human resources of South Africa.
