Minister of Mineral and Petroleum Resources Gwede Mantashe threatened to withhold critical minerals if necessary, he said at the opening of the Investing in African Mining Indaba, reacting to US President Donald Trump’s recent threats by to withhold funding in response to certain South African political policies.
The indaba being attracted thousands of delegates and 39 various government ministers in Cape Town.
Mantashe said that Africa should assert its powerful position as a major global producer of minerals, and take advantage of rising global demand to unlock beneficiation benefits to create a better life for its people.
Africa should not be dictated to by industrialised nations, he said.
Mantashe said, “Africa is the world’s richest mining jurisdiction. We should internalise that and use it to our advantage. We have something that the world wants. We are not beggars. We must use that endowment for our own benefit as a continent.”
“They want to withhold funding, but they still want our minerals,” he said. “Let’s withhold minerals. Africa needs to assert its advantage and take charge of the growing demand.”
Mantashe also announced that South Africa is developing its own list of Critical Minerals List and one of these will be coal.
This move defies the global movement to decarbonise one’s industrial footprint and the Paris Climate accord of which South Africa is party to.
Talking about the Critical Minerals List, he said “King Coal is here” and coal would be included in the list, as the coal sector was the second biggest employer in mining.
Mantashe has previously been criticised by some environmental commentators for his continued support of coal mining, which flies in the face of the renewable energy transition that might eventually result in the closure of coal power stations.
Mantashe said the Cabinet is likely to view the Critical MIneral List for approval, later this month. South Africa’s list would not only include minerals required for the renewable energy transition, he said.
South Africa intends to leverage its Critical Minerals List to drive economic transformation and growth, by positioning itself as a key player in the global critical minerals value chain. It aims to use the minerals to attract investment, through creating an investor-friendly environment with favourable fiscal regimes, streamlined permitting processes, and clear regulatory frameworks.
Volkswagen Group South Africa chairman and MD Martina Biene said at the conference that to future proof the mining industry in South Africa, a stable industrial base was required, and in this respect the motor industry was reliant on the mining as stable suppliers of commodities such as steel and aluminium and materials for batteries.
Anglo American’s Management Board of South Africa chairman Nolitha Fakude said Africa, for the first time since 1884, held the majority of commodity reserves that was required to change the world.
Not only did the continent hold a basket of commodities that were in “hot demand” required for the renewable energy transition, but it also held millions of young minds ready to participate in this new phase of integrated industrial development, she said.
Mantashe said that with the eye on beneficiation, the country needed to guarantee consistent, reliable, and affordable electricity supply. He said the government was also considering commodity linked tariffs, as well as consolidating and applying incentives and other existing financial instruments to support beneficiation.
For instance, as an example of one commodity where much beneficiation could take place, the International Manganese Institute says South Africa has about 37% of the world’s manganese ore reserves, and it also leads the world in terms of manganese production with an output of 7.2 million tons in 2023, but only 2% of this ore is processed in South Africa.
“Critical minerals cannot be synonymous with the energy transition,” said Mantashe.
Minerals Council CEO Mzila Mthenjane said they expected an announcement on the Critical Minerals List in the first quarter of this year. Mthenjane said such lists in other countries feature mainly the minerals required for the renewable energy transitions, but “we should not be surprised if coal is included in our list” because of South Africa’s particular energy and developmental requirements, he said.
Sphesihle Zondi, a Democratic Alliance deputy spokesperson on Mineral and Petroleum Resources, said that Mantashe's, opening statement at the 2025 Investing in African Mining Indaba - was an opportunity to attract local and international investment in South Africa’s mining sector.
“Instead his reckless utterances were a national embarrassment, further damaging South Africa’s investment credibility,” he added.
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