INSIGHT •
MINING INDABA 2025 INSIGHT: ENERGY TRANSITION BRINGS MINING BENEFICIATION INTO FOCUS. WHO WINS?
By Tyron Theessen and Megan Jarvis, partners at Webber Wentzel
Energy is on the minds of policymakers worldwide. In South Africa, while we may be at the beginning of the end of loadshedding, the government and broader society continue to keep a watchful eye on the energy supply. It is somewhat ironic, or perhaps opportune, that loadshedding occurred at a time when the world began pivoting away from fossil fuels to cleaner forms of energy in earnest and despite machinations of a revision to fossil fuels, this trend looks to continue here and abroad. With South Africa remaining the continent ' s highest energy user, its first-mover approach to clean fuels has seen it secure a seat among the continent’ s clean energy leaders. But this is no time to rest on proverbial laurels.
The international stage On the international stage, the primary pivot has been driven by decarbonisation, the declining cost of clean energy such as solar and wind power, and ESG becoming part of the status quo from a corporate governance perspective.
Africa within this context A notable impact of the world’ s changing energy supply mix is seen through ramifications on the mining sector, which is responsible for providing the commodities needed to manufacture the materials that underpin the transition to cleaner energy, such as batteries, turbines and solar panels. Africa is a crucial player in this regard. It houses 55 % of the world’ s cobalt, 47.6 % of manganese( with South Africa leading the way), 21.6 % of natural graphite, and just under 6 % of global copper, and nickel reserves. 1 Large lithium deposits can also be found in countries such as Zimbabwe and the Democratic Republic of Congo. Coincidently, mining is at its core an energy intensive industry as well. The extraction and processing facets, coupled with logistics and supply chain( often to and from some of the remotest regions on the Continent) means that mining is, simultaneously, essential to the production of sustainable energy solutions while being one of the largest likely users thereof.
In the past, foreign mining companies were primarily focused on extracting minerals from the continent, with surrounding communities and the broader national interest of African countries being largely second tier considerations. Today, there is growing recognition that the mining industry can no longer adopt an explore, extract and export mindset. The shadow of these practices continue to fall over the industry despite marked attempts by many to shake this bad-actor mentality by making concerted and tangible differences. Real beneficiation and ESG are now firmly part of any conversation, with mining companies expected to engage with and benefit the communities surrounding their operations.
Mining companies are not solely responsible in this respect. The communities they work with and the governments that host them each play crucial roles in moderating how mining can benefit local communities and the state while at the same time supporting and creating the enabling environment which would enable the realisation of a truly reciprocal and mutually beneficial relationship. The question of who wins as the world transitions to a just energy supply is probably therefore the wrong question. Winning denotes that there is to be a loser. In order to create the sustainable energy and mining future we all desire, there can be no losers and rather the focus should be a matter of balance.
Real beneficiation, authenticity, treating communities with respect To speak about beneficiation means thinking about whether the mining sector and government have been successful in the past. The general answer is no, though there are outliers. The Royal Bafokeng Nation in the North West is one2, with the Debswana agreement between the Botswanan
All images supplied by Webber Wentzel
Megan Jarvis, partner at Webber Wentzel.
Tyron Theessen, partners at Webber Wentzel
government and De Beers being another3. However, a cursory study of mining’ s history in places ranging from Cote d’ Ivoire and the Democratic Republic of Congo to South Africa itself suggests that too few benefited as minerals were extracted from the continent.
A vital starting point for true beneficiation is whether the mining company involved is authentic in its intentions to spread the benefit of its operations beyond the confines of the mining site fence and if it has a vision of what real beneficiation looks like. If a mining operator only approaches ESG and beneficiation to tick the necessary boxes, longterm sustainable beneficiation is stranded at the starting line.
The mining companies that have beneficiation right have been those that are highly intentional in working with the local community. They recognise not just the PR and reporting value of beneficiation, but the visceral operational benefits of building beyond the life cycle of the mine.
One benefit is protection from bad actors within the community who represent the greatest threat to operational continuity and employee safety. For example, in South Africa, the phenomenon of the
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