[Ferro-Alloys.com] Minister of Mineral Resources and Petroleum Gwede Mantashe says the reconfiguration of the Department of Mineral and Petroleum Resources (DMPR) has created an opportunity to streamline regulation and promote investment in South Africa’s mineral and petroleum sectors.

Tabling his department’s budget in Parliament on Wednesday, Mantashe said the department has been allocated R2.86 billion for the 2025/26 financial year with R1.16 billion earmarked for transfers to public entities.

“Although constrained due to prevailing economic hardships, this budget is geared towards enabling the department to efficiently regulate the mining and petroleum sectors for transformation, inclusive growth, development, and ensure that all South Africans derive sustainable benefit from the country’s natural wealth,” Mantashe told MPs.

He noted that despite geopolitical tensions and depressed commodity prices, particularly for platinum group metals (PGMs), manganese, and chrome, South Africa’s mining sector still contributed R451 billion to GDP in 2024, sustaining a 6% share. Export earnings totaled R674 billion, a slight decline from R678 billion in 2023. However, jobs in the sector fell by 0.9%, with the PGM sector hardest hit.

Mantashe reported progress in regulatory reforms. “Since our last tabling of the budget last year, the department has finalised and published for public comment the draft Mineral Resources Development Bill (MPRDB),” he said.

The revised Petroleum Products Bill is also being finalised for Cabinet submission, while the Upstream Petroleum Resources Development Act (UPRDA) signed into law in October 2024 aims to attract investment in the oil and gas sector.

Moreover, Mantashe said the Mine Health and Safety Amendment Bill is before Parliament. “Your urgent consideration and adoption of the Bill will support the strides made by the industry in improving the health and safety at our mines,” Mantashe said.

He also highlighted progress in exploration, with the R400 million Junior Mining Exploration Fund ,co-funded by Treasury and the IDC, now backing black-owned junior miners.

He said the Council for Geoscience’s mapping programme now covers over 17% of the country, up from below 5% in 2019, supporting new exploration opportunities.

Mintek’s Critical Minerals and Metals Strategy identifies platinum, manganese, iron ore, coal, and chrome as minerals essential to South Africa’s economic future.

Mantashe rejected the narrative of a declining mining sector. “We are now more convinced than ever that the South African mining industry is a sunrise industry,” he said.

Mantashe criticised the continued export of raw minerals and stated that the government is engaging with manganese and chrome producers to encourage local beneficiation. A Ministerial Task Team is working on a revival plan for the struggling ferroalloy sector, where 30 out of 59 chrome furnaces are non-operational, he said.

He highlighted continued interest in the country’s petroleum prospects, particularly in the Orange Basin, despite delays caused by anti-oil and gas NGOs. “These challenges have also deprived South Africans of the benefits that ought to rightfully accrue to them,” he said.

Government is progressing with Phase 2 of the Karoo Basin Shale Gas Project and developing the country’s biofuels sector, with regulations under review following public comment.

He said internationally, South Africa is securing energy partnerships. Mantashe confirmed an agreement under negotiation with Côte d’Ivoire to ensure stable jet fuel supply, while the Strategic Fuel Fund (SFF) has secured a 90% stake in South Sudan’s Block B2 oil project through a government-to-government deal.

The South African National Petroleum Company (SANPC), registered under the Companies Act, has begun operations and is poised to support government’s refining and energy security plans, he said.

Key projects include R134.7 million for mine rehabilitation (Mintek), R32.3 million for the Mine Water Ingress Project, and R46.1 million for the Shale Gas Project.

“We remain fully committed to modernising and improving the efficiency of our mineral resource management,”

• [Editor:tianyawei]