/ 3 February 2025

No minerals for the US if aid is cut, Gwede Mantashe threatens

Gwede Mantashe 1
Mineral Resources Minister Gwede Mantashe.(Rodger Bosch/AFP)

Mineral and Petroleum Resources Minister Gwede Mantashe has urged Africa to take control of its vast mineral resources and push back against developed nations, particularly the US, which he accused of dictating the terms of global mining and industrialisation.  

Speaking at the 31st Investing in African Mining conference (mining indaba) in Cape Town on Monday, Mantashe criticised Western countries for defining “critical minerals” to serve their own interests, sidelining Africa’s broader economic needs. He said South Africa and other African nations should not cower in fear of US threats. 

“Let us withhold minerals to the US,” he said.

“If they don’t give us money, let’s not give them minerals … we are not just beggars. Let us use that endowment for our benefit. If, as a continent, we are [paralysed] with fear, we are going to collapse, but with minerals at our doorstep.

“We cannot continue to debate these minerals based on the dictates of some developed nations as if we have no aspirations to accelerate Africa’s industrialisation and close the development deficit. We must avoid the race to the bottom.”  

Mantashe’s remarks come amid a global scramble for minerals essential to the energy transition, including lithium, cobalt and rare earths. The US has prioritised securing supply chains for these minerals, often looking to Africa as a key source.  

“Despite having these abundant mineral resources, Africa remains poor, and this must change,” Mantashe said.

“Africa needs to accept its advantage and take charge of the growing demand. I have ministers in my cabinet who always worry about geopolitics, with this imminent threat that because we passed an Expropriation Act, [US President Donald] Trump will withhold funding to South Africa.

“I said let’s not immobilise Africa. Let’s withhold minerals from the US. That is it. If they don’t give us money, let us not give them minerals. But the reality is that they take our minerals but say they are withholding funding. No, we have minerals in the continent and therefore we have something. We are not just beggars.” 

Mantashe spoke after President Cyril Ramaphosa’s office said on Monday he hoped to discuss South Africa’s land policy with the US administration after Trump said it was a good reason to suspend all aid to the country.

The US president claimed at the weekend that, with its land expropriation policy, “South Africa is confiscating land and treating certain classes of people very badly” and warned that the US would “cut off all future funding to South Africa until a full investigation of this situation has been completed”.

The presidency suggested Trump’s words were based on a misreading of the recently adopted Expropriation Act, which it said was not aimed at the confiscation of private land.

“South Africa is a constitutional democracy that is deeply rooted in the rule of law, justice and equality. The South African government has not confiscated any land,” it said.

International Relations and Co-operation Minister Ronald Lamola said on X that he hoped Trump’s advisers “will leverage this investigative period to deepen their understanding of South Africa’s policies as a constitutional democracy”.

“Such insights will ensure a respectful and informed approach to our democratic commitments,” Lamola added.

At the mining indaba, Mantashe said Africa must resist becoming a mere supplier of raw materials, while missing out on beneficiation and industrialisation.  

He pointed to South Africa’s manganese reserves — 37% of the world’s total — noting that only 2% is processed domestically.

“We are exporting jobs and profits,” he said, vowing to push for more local beneficiation.  

The minister acknowledged that energy security remains a challenge for South Africa’s mining sector but insisted that progress is being made.

“Despite the recent setback, I can assure you that, now that we have reached over nine months with no electricity interruptions, the government is working on measures to reduce administered prices and the cost of doing business,” he said.  

Mantashe said the government would soon complete its new mining licensing system, which aims to clear application backlogs and improve efficiency.  

“With South Africa leading the G20 for the first time this year, we must leverage this opportunity to shape a new era of the African mining industry,” he said.  

The mining sector remains South Africa’s largest source of income, with platinum group metals and coal leading employment figures. In 2023, South Africa was the world’s largest producer of platinum group metals, accounting for 73% of new platinum supply and 81% of rhodium output.