South Africa’s $2.5 trillion secret weapon

South Africa is sitting on a geological goldmine that extends far beyond its traditional bullion roots. As the global race for green energy intensifies, the country’svast reserves of minerals– estimated to be worth over $2.5 trillion by Mintek – are no longer just commodities to be dug up and shipped away; they are the foundation of a proposed industrial rebirth. At the South Africa Investment Forum, held during the 2025 Investing in African Mining Indaba, Mintek CEO Dr Molefi Motuku laid out a vision of a mineral-driven manufacturing economy.

Motuku’s presentation detailed South Africa’s world-leading reserves of key critical minerals, including platinum group metals (PGMs) – 88% global market share, manganese – 80% global market share, and that chromium and vermiculite also share impressive market ratios. This mineral wealth aligns perfectly with the burgeoning rare earth sector. Currently, the Steenkampskraal Mine in the Western Cape is already a focal point for neodymium and praseodymium.

These are essential components for the permanent magnets found in electric vehicle (EV) motors and wind turbines. Similarly, the Phalaborwa Project in Limpopo is proving that the future of mining is as much about circularity as it is about discovery, recovering rare earths from phosphogypsum byproducts. However, Dr Motuku warned that potential does not equal progress.

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Investment in mineral exploration has plummeted from R6.2 billion in 2008 to a meagre R1.2 billion in 2023. This drop, representing a slide from 5% of the global exploration budget to less than 1%, signals an “urgent need” for policy intervention. The transition from being a raw material exporter to a high-tech manufacturer took a massive leap forward with the announcement this month of Giga-Africa 1.

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