The African mining industry is entering a new era of optimism, fueled by rising investor confidence and the continent’s expanding role in global mineral supply chains. According to Marcin Wertz, partner and principal mining engineer at SRK Consulting South Africa, this renewed interest reflects a focus on long-term growth, including exploration, beneficiation, and the adoption of advanced technologies suited to African mining conditions.
Shifting Investor Focus
At recent industry events, including the Joburg Indaba, mining executives and investors signaled a clear appetite to move beyond current operational challenges and embrace the future of African mining. Wertz notes that the continent’s mineral wealth extends well beyond traditional commodities, offering enormous potential in critical minerals and battery metals essential for emerging technologies in renewable energy, electric mobility, hydrogen production, and healthcare applications.
While gold prices have reached record highs, Wertz emphasizes that the real growth opportunity lies in developing Africa’s broader portfolio of battery and critical minerals, including copper, lithium, nickel, and cobalt. However, progress in several African jurisdictions, including South Africa, is hampered by policy uncertainty, unreliable infrastructure, high input costs, and lengthy permitting processes.
“Policy uncertainty remains the biggest challenge to the mining sector. Investors in such a capital-intensive industry need assurance that projects will advance efficiently and that their capital will deliver returns,” Wertz explains.
Permitting Bottlenecks and Global Competition
Despite the introduction of a new mining cadastre system in South Africa, exploration permitting delays continue to undermine the country’s ability to attract investment. Wertz highlights that in comparison, permitting in the US can take only a few weeks, meaning Africa risks losing out on critical global exploration capital if bottlenecks persist.
Still, positive steps are being taken to reverse the decline in exploration spending. At the Joburg Indaba, Anglo American announced a significant investment into a junior mining exploration fund, while the Public Investment Corporation committed substantial capital to early-stage projects, with at least half earmarked for South Africa.
“South Africa remains one of the most underexplored regions in the world and must act quickly to reclaim lost ground,” Wertz asserts.
Government Support and Industry Collaboration
The strong attendance at the Joburg Indaba, coupled with remarks from South Africa’s Mineral and Petroleum Resources Minister, highlighted a renewed sense of confidence in the mining sector. Ministerial comments applauded the industry’s transformation and emphasized the need for collaboration between government, investors, and mining companies to navigate a period of transition.
Wertz stresses that coordinated action is essential to address structural challenges, unlock investment opportunities, and drive the next wave of African mineral development. By streamlining permitting processes, encouraging exploration, and focusing on value addition and beneficiation, Africa can harness its mineral wealth to support sustainable growth, local economic development, and global supply chain security.
The Road Ahead
With global demand for critical and battery minerals surging, Africa’s mining sector stands at a strategic crossroads. By attracting international capital, fostering industrial development, and leveraging its diverse mineral portfolio, the continent has the potential to become a key player in the global energy transition, securing long-term benefits for both investors and local communities.
