As Minister Gwede Mantashe prepares to deliver Budget Vote 34 in Parliament today, the mining industry stands at a critical moment. On the eve of the address, Minerals Council South Africa CEO Mzila Mthenjane presented a sobering but forward-looking assessment of the sector to the Portfolio Committee on Mineral Resources and Energy, an address that sharpened focus on both the deep challenges and untapped opportunities facing South African mining.

Mthenjane acknowledged that while the industry may face some challenges, he rejected the notion of a dying sector. “The term ‘sunset industry’ is not in my vocabulary,” he told MPs. Instead, he emphasised the country’s considerable mineral endowment, highlighting that beneath the surface lie the resources needed to power not just the economy, but South Africa’s global competitiveness, only if they are responsibly unlocked.

One of the most urgent issues raised in the Minerals Council’s presentation is illegal mining. Referring to the recent Stilfontein mine tragedy, Mthenjane described the situation as a growing national crisis that threatens safety, drains public revenue, and fuels organised crime.

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Crucially, he called for a clear distinction between criminal activity and artisanal and small-scale mining, which, if formalised, could serve as a platform for economic inclusion. “We should not confuse illegal mining with artisanal and small-scale mining,” Mthenjane said. “There are very specific arguments for why it is illegal and how it can be distinguished from what is informal mining.” The Stilfontein incident, Mthenjane said, provided a platform to understand and dig deeper into what are the drivers, and also provided an opportunity to explore how informal mining could be approached more constructively, as it presents a potential avenue for economic opportunities for many people in South Africa. However, it is equally important to ensure that the appropriate legislative environment is in place to enable artisanal and small-scale mining to succeed, while also addressing the challenges associated with illegal mining.

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As Mantashe is expected to deliver his Budget Vote, the pressure is on to outline concrete measures that will tackle illegal mining across its entire value chain, from border control and mine access to the illicit trade of minerals, while also enabling Artisanal and Small-scale Mining to be a legitimate livelihood for thousands.

The Budget Vote presents a critical opportunity for Minister Mantashe to give direction on how the Department of Mineral Resources and Energy (DMRE) will support this strategy with infrastructure, regulatory certainty, and a renewed push for local value chain development.

In 2024, the Department of Mineral Resources and Energy committed to developing the State of the Mining Report alongside the Critical Minerals Strategy. The Cabinet approved the Critical Minerals Strategy for South Africa on 14 May 2025, and it has since been published for implementation. As these milestones signal a renewed focus on the future of mining, the country and industry now look forward to hearing what lies ahead for the sector in the coming months, and how the promises already made will begin to unfold, while also looking for solutions that will uplift the industry, provide jobs and tackle illicit mining.

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