Latest news with #CriticalMineralsStrategy
The Star
22-05-2025
- Business
- The Star
South Africa's mining sector hails new critical minerals strategy as key to investment, growth
JOHANNESBURG, May 22 (Xinhua) -- South Africa's mining industry has welcomed the government's newly launched Critical Minerals Strategy and the Cabinet's approval of the Mineral Resources Development Bill (MRDB), calling them major steps toward boosting investment, enhancing local value addition, and strengthening regional industrialization. South African Minister of Mineral and Petroleum Resources Gwede Mantashe announced the approval of the two policy documents on Tuesday, noting that they are critical for ensuring policy certainty and unlocking South Africa's potential in the global minerals market. "The approval of these two policy documents marks a major milestone in our concerted efforts that are aimed at ensuring policy and regulatory certainty, as well as maximizing the country's potential in the global market for minerals," Mantashe said. He noted that while the term "critical minerals" is widely used internationally, definitions vary based on each country's strategic priorities -- including economic growth, technological development, supply chain security, and geopolitical interests. For South Africa, the strategy prioritizes minerals such as platinum, manganese, iron ore, coal, and chrome ore, which are identified for their potential to drive economic and industrial development. At the heart of the new strategy is a push to "foster" regional cooperation, promote local beneficiation, build resilient value chains, and attract investment in exploration and research. Mantashe emphasized that the aim is not just national growth but broader regional industrialization through a more strategic and localized approach to mineral resources. The strategy has been positively received by the mining industry. The Minerals Council South Africa, the sector's main representative body, confirmed that it was consulted during the drafting process and welcomed the government's inclusive approach. Independent analyst and businessman Sandile Swana described the policy shift as a "game changer" for the mining sector. "These new strategies and policies that have been issued by Gwede Mantashe and the Cabinet do change the game," he told Xinhua in a phone interview on Thursday. Swana highlighted the significance of this shift for both economic and geopolitical security, particularly in an era of increasing global trade tensions. "We've seen with the international trade wars that are in progress at the moment that during times of sensitivity, critical minerals are weaponized," he said. "That means that even in considering your security, you need to know what strategic minerals come out of your country, even your region." "I think South Africa wants to lead the Southern African Development Community (SADC) region into knowing how to manage the strategic minerals. It means that when these strategic minerals are sold, they are more likely in the future to be sold in a value-added form," he added. The new MRDB, expected to be published for public comment soon, is seen as an essential complement to the Critical Minerals Strategy, aimed at streamlining regulatory frameworks and encouraging sustainable development in the sector.
Daily Maverick
20-05-2025
- Business
- Daily Maverick
Loaded for Bear: A junior miner is listing on the JSE, an event that is as rare as it is revealing
South Africa's share of global exploration expenditure has fallen down a deep shaft to less than 1.0% from about 5.0% two decades ago. Climbing out of this hole will be a huge task, but it needs to be done if South Africa wants to have a vibrant mining sector down the road. On Wednesday 21 May 2025, Shuka Minerals Plc, a junior mining exploration company, will launch a secondary listing on the JSE's AltX board. Already listed on the London Stock Exchange's AIM, Shuka — a R50-million company — is not going to add material weight to the JSE's market cap. But the listing is both rare and revealing and therefore of more than passing interest as it coincides this week with the unveiling of South Africa's Critical Minerals Strategy and Mineral Resources Development Bill 2025. The listing is rare because almost five months into the year, Shuka is the first company listing on the JSE in 2025, according to consultancy AmaranthCX, which has a database going back to 1994. And there have already been seven announced delistings in 2025, with two more in the pipeline. AmaranthCX director Paul Miller told me that this was a reflection of a worrying trend on the bourse, which only had three new company listings for all of 2023. Last year, there were 12 company delistings and 11 listings — so the JSE ended 2024 with one less company listing and is on track this year for an even worse showing. This speaks to the wider woes of the JSE and the state of South Africa's capital markets. 'These ongoing net delistings, but more importantly the absence of primary capital raising on the market, speak to the inability of the market operators to persuade their regulators and the policymakers that this is a crisis. It desperately needs a policy intervention, but all it seems to get from the National Treasury is indifference,' Miller told me. Rarity Shuka's JSE debut is also a rarity because there are so few junior mining/exploration companies listed on the bourse — a frankly shocking state of affairs given South Africa's fabulous resource endowment. The Toronto Stock Exchange and the Australian Stock Exchange both have hundreds of junior miners listed. Both countries, of course, are major players on the global mining stage. South Africa should also have hundreds but alas, an arid junior listings desert surrounds a glittering oasis of mineral wealth. The JSE has a grand total of five junior miners, and Shuka will make it six. 'Junior mining and exploration is one side of a coin, and the other is capital market development. If you are not thinking hard about capital market development then you will not have junior mining,' Miller told me. This is also rooted in the many own goals scored over the years by the industry's regulator, the Department of Mineral and Petroleum Resources (DMPR, formerly the DMRE). Exploration is the foundation of any mining sector. It can take years or decades to build a new mine from scratch, and the resource will remain untapped if it is not discovered and uncovered by exploration, a risky business mostly carried out by junior miners. But mineral exploration in South Africa has long had too many hurdles to clear to get off the ground effectively. I have banged on for years about the needless delays in processing applications for mining and prospecting rights and the deplorable lack of a transparent mining cadastre, an online portal which should speed things up in a transparent way. There is finally light at the end of this long tunnel and Mineral and Petroleum Resources Minister Gwede Mantashe has promised that a proper mining cadastre will be up and running by the second half of this year. That should help South Africa eventually reclaim its rightful place as a focus for mining exploration and the capital this sector can attract. Mantashe on Tuesday unveiled South Africa's Critical Minerals and Metals Strategy as well as the Mineral Resources Development Bill 2025, which were recently approved by the Cabinet. 'The approval of these two policy documents marks a major milestone in our concerted efforts that are aimed at ensuring policy and regulatory certainty, as well as maximising the country's potential in the global market for minerals,' Mantashe said in a statement. Policy certainty may be the laudable aim here, but this constant shifting of the goalposts can have the opposite effect. Still, some shifting can be helpful. 'The bill proposes streamlining administrative processes to ensure proper alignment with National Environmental Management Act (Nema) and the National Water Act (NWA), and thereby reduce bureaucratic inefficiencies and improve turnaround times for mining rights, permits, and regulatory approvals,' Mantashe said. Safeguards That will be welcome provided the measures do not dilute safeguards to such an extent that critical ecosystems and waterways are threatened. Mantashe also said that the Critical Minerals Strategy — which casts a very wide net and basically includes almost every mineral of importance — '… emphasises that South Africa must prioritise exploration to sustain its mining sector and for the success of this strategy'. South Africa's share of global exploration expenditure has fallen down a deep shaft to less than 1.0% from about 5.0% two decades ago. Climbing out of this hole will be a huge task but it needs to be done if South Africa wants to have a vibrant mining sector down the road. It remains to be seen if the new strategy and bill — the latter which is now open for public comments — will help or hinder this journey. Next week the Junior Indaba will take place in Johannesburg where such issues will be explored. So a hat tip to Shuka and good luck. New company listings on the JSE and junior miners on the bourse are both critically endangered species. But they are not extinct yet. DM
Yahoo
20-04-2025
- Business
- Yahoo
Australia's Race to Develop a Critical Minerals Sector
Australia has been developing its critical mineral sector in recent years, aiming to become a major producer and processor of the high-demand minerals and metals needed to support a global green transition. In addition to launching a national strategy and providing billions in funding for the sector, the government recently established a tax incentives law for critical minerals that is expected to attract greater investment in the sector. The demand for critical minerals is expected to increase dramatically over the coming decades as countries worldwide use them to power a global green transition. Common uses for critical minerals include the manufacturing of batteries, electronics, microchips, and solar photovoltaics. Australia is home to some of the largest recoverable critical mineral deposits on earth, including high-quality cobalt, lithium, manganese, rare earth elements, tungsten, and vanadium. In December 2023, the Australian government launched the Critical Minerals Strategy 2023–2030, which provides a framework to develop critical minerals production, processing, and supply chains in Australia. It is expected to support job creation and boost economic growth. It encourages collaboration across communities, industry, investors, the research and innovation sector, states and territories, and international partners. The strategy focuses on six key areas: developing strategically important projects, attracting investment and building international partnerships, First Nations engagement and benefit sharing, promoting Australia as a world leader in ESG performance, unlocking investment in enabling infrastructure and services and growing a skilled workforce. In 2021, the government established the Critical Minerals Facility, with $1.3 billion in funding to address the funding gap in the country's critical minerals sector. It has since added a further $1.3 billion to the scheme. The facility provides financing for projects that align with the government's Critical Minerals Strategy. In February, the Australian parliament passed laws that provide production tax breaks for critical minerals and renewable hydrogen to support national energy transition plans and help decrease reliance on China for its supply. The law offers $4.4 billion in tax incentives of 10 percent for the processing and refining costs for 31 critical minerals from 2028 to 2040 for up to 10 years per project. The Resources Minister Madeleine King stated, 'By processing more of these minerals here in Australia, we will create jobs and diversify global supply chains.' Australia currently has a Labour government, led by Prime Minister Anthony Albanese. However, the opposition Liberal-National Coalition is vying for power in the May general election, and it has a very different stance on energy. The Coalition told the gas industry in April that it planned to give gas the same status as a critical minerals if it came into power, which would provide the industry with access to $3.6 billion in export finance. Susan McDonald, a Queensland senator, stated that the party will ensure that natural gas 'remains a critical part of the Australian economy for decades'. She added, 'I can announce today that to boost investment, a Coalition government will elevate gas to the same status as a critical mineral… This will ensure gas projects are able to apply for funding from the $4 billion (US $3.6 billion) critical minerals facility.' McDonald went on to say, 'This will ensure gas projects, so critical to our national and international security, are able to access specialised teams within the department of resources to support their projects.' In March, the opposition leader Peter Dutton promised to create an east coast gas reservation scheme, aimed at reducing energy prices. By contrast, Albanese aims to continue supporting a transition away from oil, gas, and coal if re-elected, particularly in the wake of the recent Trump tariffs. He plans to increase critical mineral mining and processing activities to boost Australia's trade appeal with the U.S., as the North American giant attempts to reduce dependency on China for its critical minerals and green energy components. The PM is expected to unveil plans on how he will accelerate the expansion of the industry in the coming weeks. U.S. President Donald Trump recently announced sweeping tariffs on imports from countries worldwide, with 25 percent on steel and aluminium and 10 percent on most Australian goods, except for pharmaceuticals and some critical minerals. Trump has been back and forth on his tariffs, introducing them and then later pausing them for extended periods. World leaders have responded to the threat of tariffs by diversifying their trade partners and attempting to ensure the future of their trade security in a range of ways. For Albanese, this means making Australia a critical minerals hub. Australia's Labour government has supported the development of the country's critical minerals industry, with significant sectoral growth expected over the coming decades. However, this expansion could depend heavily on whether Albanese wins the May election or if the Liberal–National Coalition takes power, putting more of an emphasis on natural gas development. By Felicity Bradstock for More Top Reads From this article on
