BY:TANA MALINGA
South Africa’s mining sector remains a cornerstone of the economy, contributing 6-7% to GDP, generating over 50% of merchandise export earnings, and supporting more than 450,000 direct jobs, with many more across mining value chains, according to the Minerals Council South Africa.
As global demand rises for critical minerals such as platinum group metals (PGMs), manganese, chromium, gold and iron ore, South Africa’s leadership role is again in focus. The country is the world’s largest PGM producer and a leading producer of manganese and chromite, according to the US Geological Survey.
Future growth will not be driven by extraction alone, but by value chain operators and small-scale mining enterprises that support operations and provincial economies. These operators face challenges including limited access to finance, cash-flow pressure, commodity price volatility, infrastructure and logistics bottlenecks, energy constraints, and rising compliance costs.
The World Bank estimates that artisanal and small-scale mining employs over 45 million people globally, highlighting the scale of mining-linked livelihoods. In South Africa, formalising and financing these operators is a competitiveness strategy, not a social intervention.
According to Deerosh Maharaj, Head of Energy, Infrastructure and Mining at Business and Commercial Banking at Standard Bank South Africa, mining resilience depends on strong ecosystems across energy, logistics, engineering and services, which improve efficiency and sustainability.
South Africa’s mineral endowment sits within a broader African context. The African Development Bank estimates that Africa holds about 37% of global manganese reserves, with the largest deposits in South Africa, alongside minerals critical to industrialisation and the energy transition.
Converting mineral wealth into lasting value requires strong local and regional value chains. From contract mining and equipment hire to logistics, processing, engineering, rehabilitation, compliance and professional services, small-scale miners and contractors form the operational backbone of the sector.
Without resilient value-chain operators, efficiency and localisation weaken and value becomes concentrated, limiting development impact. Critical minerals only deliver value if value chains are resilient and inclusive.
For Abe Andries, Head of Mining at Business and Commercial Banking at Standard Bank South Africa, engagement through platforms such as Mining Indaba keeps focus on cost efficiency, operational continuity and compliance.
Mining’s impact is strongest at provincial level, particularly in North West, Limpopo, Northern Cape and Gauteng, where local economies depend on mining-linked businesses. Across Africa, the African Development Bank highlights the need to move away from enclave-style extraction towards locally anchored supply chains.
Sector challenges are creating new opportunities in embedded power generation, logistics and materials handling, and environmental, safety and compliance services. At continental level, the African Development Bank and the United Nations Economic Commission for Africa identify beneficiation, value addition and regional supply-chain development as the most effective paths to inclusive growth.
As South Africa strengthens its global mining position, long-term success will depend on well-financed, formalised and integrated small-scale miners and value chain operators, supported by deep sector insight.
IMAGES SUPPLIED
Images caption:
Image 1: Deerosh Maharaj, Head of Energy, Infrastructure and Mining at Business and Commercial Banking at Standard Bank South Africa
Image 2: Abe Andries, the Head of Mining at Business and Commercial Banking at Standard Bank South Africa
