The South African Cabinet has approved a detailed plan to implement the country’s Critical Minerals Strategy. Officials see this as a key effort to gain more economic value from mineral resources and boost job creation.
The decision was confirmed in a government statement and sets in motion a framework first published in June 2025. This strategy aims to make South Africa more competitive in the global market for minerals essential for renewable energy and technology. The plan focuses on six specific areas: geoscience mapping and exploration, value addition and localization, research, development and innovation, infrastructure and energy security, financial tools and regulatory harmony.
In a briefing, government representatives presented the strategy as necessary to ensure that the nation’s resources benefit a wider audience. It aims to use critical minerals, including platinum group metals, chromium, manganese and vanadium, to promote local industrial growth rather than just exporting raw materials.
“South Africa has a chance to redefine its role in the global minerals market,” said Department of Mineral Resources and Energy spokesperson Makhosonke Buthelezi. “We want to go beyond being just a source of raw materials and build local industries that create lasting jobs and develop technical skills.”
This approval comes as global demand for these minerals rises, mainly due to U.S. and European Union efforts to secure supply chains for electric vehicle batteries, solar panels and other green technologies. Analysts warn that even though South Africa has large reserves, it faces fierce competition from other resource-rich countries and must address significant domestic issues to attract investment.
A major part of the plan focuses on “value addition and localization.” This principle aims to require more processing and manufacturing within South Africa. Supporters believe this is crucial for job creation and economic stability. However, critics in the mining sector have pointed to high operational costs and policy uncertainty as obstacles to investment.
The strategy also emphasizes regulatory harmony, aiming to simplify the often complicated and conflicting permission and licensing process that investors face. The government believes a more stable and clear regulatory environment is essential to attract private investment needed to develop new mines and processing facilities.
Another important focus is addressing the country’s severe energy issues and infrastructure needs. Ongoing electricity shortages from the state-owned Eskom utility have disrupted mining and industrial activities for years. The plan connects the minerals strategy to broader government efforts to ensure reliable and affordable energy, possibly increasing the share from renewable sources, though specific new energy projects were not mentioned in the announcement.
The plan emphasizes research, development and innovation to build technical skills and explore new ways of extracting and processing minerals. This may include partnerships with universities and international groups.
“Historically, the benefits of our mineral resources have not been shared evenly,” Buthelezi stated, reflecting a common belief among government officials. “This strategy is about transforming the economy and promoting inclusion, not just industrial policy. Its success will depend on creating real opportunities for historically disadvantaged individuals and communities.”
Labor unions, influential in South African politics, have reacted with cautious optimism. The Confederation of South African Trade Unions (COSATU) welcomed the Cabinet’s approval as a “step in the right direction” but plans to monitor the process closely. “The promise of localization and job creation is exactly what our economy needs,” COSATU spokesperson Zanele Sabela said. “However, past strategies have often failed to deliver real benefits for workers. We expect strong commitments to fair labor practices, community engagement and strict environmental protections to be essential parts of any project within this strategy.”
Environmental organizations have raised concerns, urging clarity on how the increased mining push will balance ecological protection and water management, especially in sensitive areas. The financial tools mentioned in the plan will likely include a mix of public funding, possible sovereign green bonds, and measures to reduce risks for private investors. The government aims to partner with development finance institutions.
International reactions have been attentive. Diplomatic sources from countries with significant interests in the mineral industry say they are examining the details of the implementation plan. The strategy aligns with broader trends where Western nations want to diversify supply chains away from dominant producers, which could create opportunities for South African exports if competitiveness can be achieved. This strategy comes amid persistent economic challenges in South Africa, such as high unemployment, inequality and slow growth. The government hopes the Critical Minerals Strategy will lay the groundwork for a more sustainable and inclusive economic future.
Analysts believe that the true test will be in how well it is executed. “The strategy looks good on paper, recognizing the right challenges from energy to regulation,” said independent mineral economist Peter Major. “The ongoing issue in South Africa is moving from policy to action. This requires consistent application, less bureaucratic delays and a focused effort to improve the business environment. The global market is competitive and capital will flow to the safest and most efficient regions.”
Officials say working groups will now be established to advance each of the six focus areas and progress reports will be submitted to the Cabinet regularly. The Ministry of Mineral Resources and Energy will lead coordination among various government departments.