Miningweb: South Africa’s mineral exploration falls for the seventh year

Key topics:SA exploration investment falls 5.3%, seventh year of declineJunior mining sector weak, threatening future project pipelineGov’t aims to boost exploration with strategy and incentives.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox every morning on weekdays. Register here.Support South Africa's bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..By William Clowes.South Africa’s investment in mineral exploration dropped for a seventh consecutive year, despite the government’s ambitions to arrest the decline.While the country is Africa’s largest exporter of mineral products, companies are spending ever smaller amounts on prospecting to identify and define the mines of the future. Nations like Zambia and Democratic Republic of Congo attract a greater share of exploration capital that’s allocated to the continent.Exploration spending in South Africa fell 5.3% to 738 million rand ($43.9 million) in 2025, according to data published this week by the government’s statistics agency using 2015 constant prices. Investment in prospecting has slumped more than 85% in the past three decades, the data show.Minerals Council South Africa – the mining sector’s main lobby group – last month described exploration as the industry’s “lifeblood.” Dwindling investment “is deeply troubling for our sector and it needs urgent attention,” said the organisation whose members include Valterra Platinum Ltd, Harmony Gold Mining Co. and Exxaro Resources Ltd. .Read more:.Critical minerals, critical moment: South Africa is losing the race to supply the world.An underdeveloped junior mining and exploration industry is leading to the “effective collapse of the sector’s project pipeline,” according to a recent paper from the Cape Town-based Economic Research Southern Africa. The government could revitalise prospecting by offering tax rebates, establishing a transparent database of available mining rights and increasing funding for geological mapping, it said. The Department of Mineral and Petroleum Resources published a new strategy last year which prioritises restoring South Africa’s share of global exploration spending to 5%, up from current levels below 1%.Despite gloom around the mining industry’s prospects in South Africa, the country remains a leading producer of multiple commodities including coal, gold, iron ore, manganese, chrome and platinum-group metals. Total mineral sales jumped 7.3% last year to 861 billion rand. .© 2026 Bloomberg L.P.

Miningweb: South Africa’s mineral exploration falls for the seventh year

Related Stories

By the numbers: Eskom's performance under Cyril's presidency

Iran war hits BHP - Diesel reliance becomes a costly bottom-line drag

Gas delays force SA to keep coal power stations running after their sell-by date

Afrimat’s 20-year milestone: Digging into the good, the bad, and the resilient for Ricardo Portfolio investors