Despite concerns about regulation and policy uncertainty, there are green shoots on the horizon for the mining sector as demand for critical minerals rises and government and private sector interventions to address logistics bottlenecks gain further momentum.
In 2025 global diversified miner Glencore invested $250m (R4.2bn) for the development of the Prieska copper-zinc mine in the Northern Cape, boosting demand for South Africa’s critical minerals.
The Public Investment Corporation (PIC) unveiled R1.35bn in funding for early-stage mining opportunities, further boosting future production.
Stewart Nupen, Deloitte Africa technical mining advisory leader, said South Africa could benefit further if there is sustained investment that supports the development of new mineral development projects, which in turn could provide employment, pay taxes and royalties and have a multiplier effect on the wider economy.
“In addition, great importance should be given to positioning beneficiation of the minerals and metals produced in South Africa, to position a role that catalyses skills development, employment and industrial opportunities,” he said.
According to estimates, South Africa is currently ranked fifth internationally in terms of mining contribution to GDP, and the country is ranked in the top three globally in terms of production of platinum group metals (PGMs), vanadium and ferrochrome.
The ferrochrome sector is on the brink of closing all smelters because of the more than 900% increase in electricity prices for large consumers since 2008. The ramifications for domestic industries ... are serious, with negative consequences for employment
— Bongani Motsa, Minerals Council South Africa acting chief economist
Nupen said that not only are African countries host to a significant endowment of critical minerals, but the continent is underexplored relative to the rest of the world. “This represents the biggest opportunity to leverage its mineral potential and provide a valuable role in the supply chain for growth and development of the mining sector.”
Commodity prices were volatile in 2025, with gold hitting an all-time high of $4,300 an ounce, underscoring its status as a safe-haven asset.
However, natural diamonds remained under pressure from cheaper lab-grown diamonds, resulting in Africa’s biggest diamond producers, including South Africa, establishing a diamond fund to promote natural gemstones.
Old Mutual Wealth chief strategist Izak Odendaal said that while the gold price has increased substantially as investors pivoted towards safe-haven investments, the past few months have seen a lot of momentum buying and speculation.
“It is impossible to know whether this continues or how far,” he said. “One of the factors will be the path of US interest rates. If the Federal Reserve keeps cutting rates, the gold price could keep marching higher.”
Meanwhile, thousands of jobs could be saved in the ferrochrome industry after Eskom finalised a memorandum of understanding (MoU) with Samancor Chrome and the Glencore–Merafe Chrome Venture, following talks with the minister of electricity & energy and organised labour over a specialised electricity tariff.
Through the MoU, the parties sought to develop a sustainable, long-term intervention for the ferrochrome sector, which has been severely affected by global market pressures and rising production costs.
The Minerals Council South Africa, which represents 80% of the country’s mining producers, said mining and construction could be catalysts for growth in 2026.
The council’s acting chief economist, Bongani Motsa, called for investor-friendly policies and an optimal operating environment to attract capital inflows into these sectors as a matter of urgency, and for the country’s uncompetitive electricity prices to be addressed.
Motsa said ferroalloy smelters were no longer competitive despite the abundance of minerals in the country.
“The ferrochrome sector is on the brink of closing all smelters because of the more than 900% increase in electricity prices for large consumers since 2008. The ramifications for domestic industries, both supplying the smelters and relying on their products, are serious, with negative consequences for employment,” he said.
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