Sharyn Macnamara – Editor : African Mining , incorporating Mining Mirror
African mining outlook in 2025 , cautiously optimistic amid geopolitical uncertainty
INTRODUCTION
Writing in the global context of an escalating war in the Middle East , a continuing war in the Ukraine , a flagging Chinese economy and concerns that the US presidential election could ignite new trade wars 1 – by all accounts , this geopolitical uncertainty is uncomfortable for the African continent . However , despite these unsettling times , African mining is seeing a glimmer of hope in the prospects of fulfilling the global need for critical minerals and metals in the world ’ s quest for a green energy transition .
The global and African context With the demand for transition resources expected to grow fivefold by 2050 2 as the world shifts to cleaner energy , Africa ’ s mining sector will play a pivotal role in the global energy transition to supply the demand for key minerals like lithium , cobalt and copper , among others . However , with opportunity comes risk and EY notes , “ Significant transformation of the sector through innovation , collaboration and agility is critical for reshaping the future with confidence . 3
“ Before it can meet surging demand , the sector must first overcome a trifecta of challenges : achieving sustainable mining while managing capital discipline and meeting higher stakeholder expectations . Maximising value is top of mind for miners , reflected in efforts to reposition portfolios and tap into multiple financing sources to accelerate growth .”
The local winds of change On the local front it was clear that the Mining Industry , in collaboration with state owned enterprises ( SOEs ) and the South African government are doing just that – innovating , together , to solve local challenges in power generation , logistics , water scarcity and crime to create a more enabling environment to attract foreign direct and local investment , sorely needed to grow the economy .
This was made clear at the Joburg Indaba held in early October 2024 when chair of the event , Bernard Swanepoel , commenting on the positive tone of the conference , noted , “ We are enjoying a moment of optimism , the Government of National Unity is not an opportunity to be wasted . If we create the right environment for capital , then the capital will flow , both local and foreign . It will be self-fulfilling .” Industry stakeholders at the event discussed topics like defining critical and strategic minerals within a South African context , rather than basing a definition on foreign standards 4 ; the current review of the MRPDA where gaps and legal shortcomings are being addressed ; the criticality of the imminent implementation of the online cadastral system and shortening of licensing approval times to be competitive ; the reduction of the cost of listing for junior miners and attraction of venture capital and the longer-term investment in the value chain , including beneficiation at home – and so much more . 5
“ The mining industry is driving growth , which is a notion that has been reinforced by Eskom promises of continued stable electricity supply , an improved outlook from Transnet , the CSIR ’ s innovative mining approaches , increased exploration budgets and the release of closure trust funds , to name a few ,” said SRK Consulting 4 , commenting on the enthusiastic outlook at the event , further buoyed by the high gold prices at the time and the hope that as the renewable energy space experiences greater growth through the development of green hydrogen technology , platinum-group metals ( PGMs ) will follow suit .
Innovation – challenging the status quo – and collaboration are where the solutions to sector challenges lie , and suppliers to industry are key in driving innovative services and tech to enable and enhance efficiencies in mining . We celebrate you , our valued experts and advertisers as drivers of innovation in yet another African Mining Suppliers Directory . Thank you to you and our valued readers for your continued support , and may 2025 be a year filled with growth for all !
Sharyn Macnamara
References : 1 . At the time of writing on 22 October 2024 2 . https :// www . investafrica . com / invest-africa-events-calendar / miningseries2025 3 . https :// www . ey . com / en _ za / insights / energy-resources / risksopportunities 4 . https :// www . africanmining . co . za / 2024 / 10 / 24 / joburg-indaba-insightspresent-an-optimistic-outlook-for-sa-mining / 5 . Media Statement : A real sense of optimism at Joburg Indaba – Where the real conversations take place
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The sector must first overcome a trifecta of challenges : achieving sustainable mining while managing capital discipline and meeting higher stakeholder expectations - EY
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