(File photo by Tafadzwa Ufumeli/Getty Images)
Securing future supply of critical minerals is increasingly important in the world’s quest for a lower carbon future. The global economy requires cleaner energy to reduce the adverse effects of our ecological and climate crisis.
This crisis is primarily driven by greenhouse gas emissions from human activities. These emissions are a function of burning fossil fuels and deforestation, which themselves have differentiated drivers.
The United Nations’ Inter-governmental Panel on Climate Change (IPCC) is in its seventh assessment cycle, which delivers a comprehensive scientific report on climate change developments, its negative effects on societies and nature, irreversible risks associated with it and pathways for adapting to, and mitigating, it.
As it stands, the 2023 Synthesis Report of the IPCC Sixth Assessment reports: “Human activities, principally through emissions of greenhouse gases, have unequivocally caused global warming, with global surface temperature reaching 1.1°C above 1850-1900 in 2011-2020. Global greenhouse gas emissions have continued to increase over 2010-2019, with unequal historical and ongoing contributions arising from unsustainable energy use, land use and land-use change.”
This has caused changes to the Earth’s climate system, including rising sea levels and intensifying weather conditions such as abrupt heatwaves and heavy rainfalls.
Bringing it home, the recent heavy rainfalls and subsequent flooding in the Eastern Cape signifies the distressing climate crisis, which has resulted in loss of lives and livelihoods. Mthatha Dam was reportedly at 99.8% capacity before upstream rainfall raised its level to 102%, causing a spillover. This highlights an infrastructural maintenance oversight at the local government level.
It is through these human-induced climate crises where socio-economic instability and energy insecurity continue to be exacerbated. For one, about 1 600 structures and more than 5 000 people have been affected by the Eastern Cape floods. The department of human settlements has had to provide alternative accommodation while people rebuild their homes.
Among the destroyed infrastructure are schools, which has delayed the schools mid-term examination period.
The response to the climate crisis has taken multiple and evolving forms, one of the most important being the strategic use of minerals critical for the transition to clean energy, enabling low-carbon economic growth and industrialisation.
Critical minerals, globally, have become essential for manufacturing and technological needs to advance industries and develop nations. For one, rare earth elements are crucial components in the production of wind turbines as a source of renewable energy while copper and aluminium are used for electricity networks.
Global powers such as China and the United States have shone a bright light on Africa to secure their respective energy transitions; South Africa alone holds a significant amount of minerals reserves. To fully maximise this economic potential while responding to climate change, the department of minerals and petroleum resources released its Critical Minerals and Metals Strategy last month which was approved by the cabinet and welcomed by the mining industry.
The strategy provides a clear and coordinated roadmap to capitalise on South Africa’s mineral wealth in a way that fosters “inclusive growth, industrial development, job creation and economic transformation”, writes Minister Gwede Mantashe in his foreword to the strategy. In 2024, the performance of the industry resulted in R432.7 billion contributed to GDP, R43.6 billion in taxes and employing 474 876 people.
But investment in mineral exploration has declined by 6.2% year-on-year while mining capital expenditure decreased by 9.6% year-on-year in 2024.
These figures have fed into the narrative and ongoing debate of whether mining is a sunset or sunrise industry. The strategy sees mining as a sunrise industry through its key interventions in the critical minerals environment.
By definition, in the South African context, critical minerals are “minerals that are essential for the overall economic development, job creation, industrial advancement and contribution to national security”. With this understanding, the strategy aims to:
● Attract investments in exploration, production, processing and beneficiation of critical minerals;
● Provide targeted support for the expansion and localisation of the critical mineral value chains, and
● Foster regional and international cooperation for sustainable supply of critical minerals and metals.
Attracting investment in exploration and production requires a strong geological mapping foundation. This is regarded as a key pillar and point of intervention in the strategy.
One of the ways to achieve this is through a renewed digital mining cadastre system, which was expected to be completed by the minerals department this month. A cadastre is a mining licensing system for processing mining and prospecting applications, providing geospatial information to potential investors and existing miners.
In February 2025, reports confirmed that the new cadastre system was undergoing initial testing in the Northern Cape, marking a key step toward enhancing transparency and boosting investor confidence in mineral exploration and production. Further reporting confirmed that the system will be launched in the Western Cape.
The updated cadastre system is a critical step in attracting investment. As such, it must have accurate, up-to-date geological data that limits exploration risk, enhances resource confidence and provides potential investors with the transparency and certainty needed to commit capital to long-term mineral development projects.
Local processing and beneficiation of critical minerals is crucial in aiding industrial development and driving economic transformation. Prioritising processing and beneficiation capabilities will enable the diversification of downstream industries, while also facilitating technology transfer and the development of a skilled workforce. But infrastructure development and reliability of energy supply will be essential for achieving this ambition.
The strategy notes emerging sectors such as renewable energy technologies, electric vehicles, green hydrogen and advanced manufacturing as a starting point for processing and beneficiation. This will require further emphasis and implementation of the 2011 Beneficiation Strategy to align with the Critical Minerals Strategy in advancing and scaling up the critical minerals industry.
Considering one of the proposed amendments to the Minerals and Petroleum Development Act, section 26 aims to promote beneficiation and for mineral producers to make provision for local beneficiation (at the minister’s discretion of what is deemed to be of national interest).
Guidelines and regulations are yet to be developed, which weakens investor confidence. Clarity on how this will be administered in amendments to the Act, and the obligatory requirements from mineral producers will be integral for the successful implementation of the Critical Minerals Strategy.
The creation of sustainable value chains and cooperation at regional and international level will be crucial to executing the strategy, notwithstanding risks associated with minerals exploration and production. One of these risks is poor traceability of resources as well as environmental, social and governance issues which can have adverse effects on people and the environment.
Building advanced mineral processing capabilities will require strategic partnerships and strong traceability systems.
Having reliable traceability systems assists in gathering information to support a risk-based approach in observing and responding to unintended consequences or negative externalities in critical minerals supply chains.
Critical minerals exploration and production have emerged as essential in supporting low-carbon economies, particularly for developing countries that are resource-led, such as South Africa. For this strategy to materialise, a transparent cadastre system, legislative certainty and infrastructural development will be critical. It will give South Africa the opportunity to develop a critical minerals industry that is responsible and leads sustainable supply chains in the country and beyond.
Busisipho Siyobi is the head of the natural resource governance and climate change programme at Good Governance Africa.