Deputy Minister Phumzile Mgcina: Young Leaders Programme

Moderator of the session, Gordon Letsoalo
Minister of Mineral and Petroleum Resources, Mr Gwede Mantashe
Organisers of the Investing in Africa Mining Indaba
Captains of the Industry
All youth formations that are present here
Young entrepreneurs and professionals
Distinguished Guests

It is truly an honour to be engaging with young leaders, pioneers, professionals, and entrepreneurs at this Young Leaders Programme.

Over the past four days, there have been robust discussions at this year’s mining indaba on the mining industry’s contribution to Africa’s sustainable development, employment creation, and poverty eradication.

Emerging out of the discussions is a general consensus on several issues that will propel the mining industry to greater heights and thereby contribute to Africa’s developmental priorities as espoused in Agenda 2063. Key among these issues, which we intend to advance to the Group of Twenty (G20), is advancing mineral development, developing people, and mineral stewardship which speaks to responsible exploitation of our mineral resources.

It is encouraging that the African continent is beginning to appreciate the critical role that young leaders like yourselves, can play in advancing mineral development, at the pinnacle of which is exploration. It is, however, regrettable that in 2023, Africa’s share of global exploration budget stood at 10%, whereas South Africa’s share remains below 1%. For a continent, and a nation that is highly dependent on its mineral resource endowment for development, this cannot be accepted.

The truth of the matter is that there can be no mining without exploration; hence, the South African government has resolved to support junior miners – most of which are young leaders - through convertible grants and driving exploration for minerals, including but not limited to, copper, nickel, graphite, lithium, and rare earth elements.

I am pleased to report to you that, following the establishment of the country’s exploration fund in 2024, at least eight projects are in line to receive funding to the tune of R160 million from the first funding call. Most notable to us is that of these eight projects, three are 100% black-female-owned, and all other beneficiaries are more than 50% black-owned.

Developing people talks to our resolve to transform the mining industry and thereby ensure that historically disadvantaged individuals - blacks in general and Africans in particular – meaningfully participate in the industry and in the mainstream economy.

Informed by the Freedom Charter’s call that “the people shall share in the country’s wealth”, the Mineral and Petroleum Resources Development Act (MPRDA)bestowed thecountry’smineral resourcesunder thecustodian of the state on behalf of the people as a whole. This has not only paved the way for all South Africans to become meaningful participants in the industry, irrespective of their race and class, but has also accelerated the participation of women and the youth in the industry.

To alleviate the challenges that are faced by artisanal and small-scale miners, the Department of Mineral and Petroleum Resources continues to assist these miners to access funding for their start-up projects that are considered as high risk. To this end, at least twenty projects have been selected to receive funding to the tune of R67 million between February and March this year. Thereafter, another funding call will be issued. We call on all aspirant miners to apply for this fund, which promises to empower young people to create their own opportunities.

There is also a general consensus emerging out of this year’s mining indaba discussions that Africa must promote and advance the beneficiation of the minerals that are mined in our continent at source, or close to the point of production. This is informed by the fact that the export of these minerals in their raw form not only exports the jobs and profits that ought to accrue to Africa but also imports poverty.

It is within this context that the department continues to intensify its engagements with producers on the need to invest in local beneficiation, including revitalizing the country’s mineral processing facilities. We are alive to the fact that beneficiation is energy intensive; hence, our determination to ensure the supply of consistent, reliable, and affordable electricity supply. Essentially, local beneficiation is about responsible exploitation of our mineral resources for the benefit of the people of Africa.

I can therefore submit that the G20 presidency gives us an opportunity to promote Africa’s developmental priorities, at the center of which is inclusive economic growth, employment creation, and poverty eradication.

Just before I close, moderator, allow me to submit that in view of the recent retrenchments in the South African mining industry, the department continues to engage with mine producers to pursue the “Arnot scenario” of transferring mine ownership to the workers as opposed to retrenching mineworkers and putting mines under care and maintenance.

In closing, allow me to take this opportunity to urge all young leaders to seize the opportunity and take advantage of the growing demand for the minerals that are considered important for the cleaner economy. Let us work together and ensure that these minerals facilitate the developmental and sustainability objectives of the Africa We Want.

I thank you.

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