MINING
large mines have announced plans to build or source renewable energy for their operations, these include organisations such as Northam Platinum building a 180 MW solar farm for its Zondereinde mine, and Glencore buying solar power for its smelters via a long-term power purchase agreement.
As ESG expectations have risen sharply in the mining sector, there has not only been a greater focus on water, nature, and biodiversity, but also on human capital and human rights. On the one hand, the country must gradually move away from fossil fuels( like coal) despite the fact that the coal mining sector employs over 100 000 people and underpins entire regional economies; on the other, South Africa is exceptionally well-positioned to supply the critical minerals needed for clean energy technologies. The“ just transition” is not only about managing decline in carbon-intensive sectors; it is also about seizing new opportunities.
South Africa mines many of the minerals that are crucial to the transition, such as PGMs, vanadium, copper and manganese, among others. The World Economic Forum reports that Southern Africa holds about 30 % of the world’ s critical mineral resources. These minerals are essential for solar panels, wind turbines, batteries, hydrogen fuel cells, and electric vehicles. Demand for them continues to soar as the global energy transition accelerates.
Critical minerals represent a“ sunrise” opportunity for South African mining companies. Instead of seeing ESG solely as compliance through reducing their own emissions, they can pivot their portfolios toward enabling the world’ s green economy. However, capitalising on critical minerals must be done in an ESG-conscious way to truly align with the just transition. The“ just” component means ensuring that workers, communities, and the broader society benefit from this shift.
It is important that mining continues to shift beyond compliance and extraction to driving inclusive growth. South Africa has an opportunity to move up the value chain, transitioning from a supplier of raw minerals to a global leader in beneficiation and advanced production.
This shift requires strategic investment in local processing capabilities and a coordinated policy framework to attract investors. It further requires us to consider finance differently and truly leverage the innovative finance structures that crowd-blended capital or blended finance pools to enable this shift.
The country ' s diversified minerals endowment offers uncontested exploration and mining growth potential for minerals critical to, firstly, the infrastructure and economic development of the country and, secondly, enabling the just energy transition to a low-carbon future.
Ultimately, the SA mining industry’ s response to ESG can serve as a model for others, demonstrating that when it‘ s coupled with innovation and genuine stakeholder engagement, a deeprooted compliance culture could evolve into a powerful force for competitive, responsible growth. The payoff is a mining sector that not only remains profitable, but also contributes to critical national solutions, like driving inclusive economic development. �
46 sabusinessintegrator. co. za