Mining remains a touchy topic for many South Africans, often torn between the promise of jobs and the risk of polluted communities. Yet, against a complicated global backdrop, South Africa’s mining industry is showing signs of fresh life, with plenty of eyes on its future.
Mineral Resources Minister Gwede Mantashe gave a confident outlook in Parliament on Wednesday, 2 July 2025, saying South Africa’s mines aren’t on the way out, but gearing up for new growth.
According to Mantashe, a major study by Mintek, the country’s top mineral research agency, alongside a new Critical Minerals and Metals Strategy, has revealed just how much potential is still buried underground.
“From platinum and manganese to iron ore, coal and chrome, these minerals are set to drive South Africa’s economy for years to come,” Mantashe said. “Where some see a sunset industry, we see a sunrise, a mining sector filled with opportunities.”
Still, he admitted it’s a tough international market. Global trade tensions, geopolitical spats and US tariffs on certain minerals continue to challenge local miners. But despite it all, the sector clawed back growth in 2024. Mining’s contribution to the economy ticked up 0.3% last year, worth R451 billion, and continued to make up about 6% of the country’s GDP.
Exports, however, dipped slightly. In 2024, the industry earned R674 billion in export sales, down by 0.6% from the previous year.
Moreover, the real hope for mining’s future lies in discovering fresh reserves. That’s why government and industry players are backing the Junior Mining Exploration Fund. With R200 million from National Treasury, matched by the IDC, the fund is already signing deals with black-owned junior miners. Mantashe says this will not only uncover new mineral hotspots, but also transform an industry long criticised for its lack of inclusivity.
As older gold mines wind down, the push is on to find new resources vital to everything from tech manufacturing to infrastructure. The Council for Geoscience is also deep into a mapping programme to pinpoint South Africa’s hidden geological wealth. In the coming year, this work will continue both onshore and offshore, aiming to provide the data that investors need to take the plunge.
Meanwhile, the department’s overall budget for 2025/26 sits at R2.86 billion. This includes earmarked funds for fixing up derelict mines, studying mine water ingress, and even advancing South Africa’s shale gas ambitions.
Closer to home, the Amajuba District, covering Newcastle, Utrecht and Dannhauser, is seeing a rush of mining activity.
On 2 July 2025, Newcastillian News reported that Newcastle Municipality gave the green light to a company, (albeit conditionally) to start a coal project. Utrecht is on a similar path. Idwala Coal Mining is pushing ahead with a 1,500-hectare coal venture expected to last three decades. This project is still under scrutiny, with environmental studies and public consultations lined up to make sure the community isn’t left to pick up the pieces.
In fact, mining interest in the wider Amajuba region is booming. As of late 2024, nine companies had applied for prospecting rights around Newcastle, with even more applications following. For example, Chakula Kikaboni Farming is exploring rights to mine coal and iron ore, with public meetings underway to gauge local sentiment.
But it’s not all applause.
Residents have raised serious concerns, from coal dust and polluted water to potholed roads under the strain of heavy trucks. The Minetek Resources project just 5km from Newcastle has sparked particularly heated debates. Locals are poring over the Environmental Impact Assessment, with feedback open until December.
Dannhauser knows these issues firsthand. The Ikhwezi Mine has faced heavy criticism for failing to keep promises and contributing to crumbling infrastructure. To keep a tighter grip on such projects, Newcastle Municipality recently formed a dedicated committee to vet mining proposals, ensuring they deliver more than just short-term gains.
Interestingly, Northern KwaZulu-Natal isn’t putting all its eggs in the coal basket. The region is also seeing a wave of solar energy projects, signalling a balanced approach to future development.
This blend of traditional mining and renewables could help cushion local economies against global price shocks while opening doors to sustainable growth.
Ultimately, South Africa’s mining story is far from over. With funds funnelled into new exploration and stronger rules to protect communities, the sector could well become a cornerstone of inclusive growth, if promises translate into real benefits on the ground.
Whether these mining ventures will truly uplift local towns or simply deepen old wounds remains to be seen. For now, the opportunity is there. The challenge is ensuring it’s handled right.
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