Advancing Critical Minerals in RSA through Policy Reforms and Investment Mobilisation
2025
South Africa is an established mining center, producing more than 40 minerals, 9 of which are essential for the energy transition.
Of these, 5 Critical Minerals (CMs) meet the Minimum Viable Scale (MVS) for local midstream processing, a key threshold that enables economically viable local value addition and job creation. South Africa is already a leading exporter of these raw materials at scale, generating approximately £11.8 billion in export value. This positions the country to significantly expand local beneficiation, driving further sector growth and socio-economic development.
Global demand for critical minerals is projected to double by 2040, fueled by the rapid adoption of green technologies, particularly in electric vehicles and renewable energy, creating an ~US$770Bn global opportunity. To manage anticipated supply constraints, countries are increasingly seeking to diversify their sources to (1) strengthen domestic supply chains and (2) reduce the risks associated with the current geographic concentration of critical mineral production.
Key Critical Mineral Highlights
Global Demand
£344Bn
Expected increase in global demand for critical minerals by 2040
Production
5+
Key critical minerals mined in RSA that meet MVS for processing
Exports
~£12Bn
Estimated annual export value of RSA critical mineral exports
Following the Phase 1 study, which identified the Republic of South Africa (RSA) as one of three African countries best positioned for midstream processing, involving the refining and value-adding of raw materials before export. The focus shifted to, understand market access barriers that hinder investment into refining and beneficiation, build a project pipeline to identify bankable midstream processing opportunities and mobilise investment by connecting projects with investors, off-takers, and financiers.
Support Provided
Developed a pipeline of 42 high-potential projects
Developed a project pipeline of 42 high-potential projects engaged in midstream processing & auxiliary activities for key minerals
- 16 midstream processing projects
- 26 projects engaged in auxiliary services
Consulted 20+ project developers and industry stakeholders to understand key challenges and opportunity
- Quantified the investment needed, estimating over £1.5Bn to realise projects
- Identified 20+ barriers across 8 sector enablers e.g. infrastructure, finance, and regulation
- Prioritised barriers by socio-economic impact to inform policy reform recommendations
Formulated policy reforms to unlock £6.3bn opportunity for RSA
Developed tailored policy reform proposals aligned with South Africa’s departmental focus areas, e.g., Department of Trade, Industry and Competition (DTIC), Department of Mineral Resources and Energy (DMRE), targeting high-impact barriers first
- Incorporated insights from stakeholder engagements to develop and prioritise policies
- Drafted policy charters addressing barriers to guide implementation and secured buy-in from relevant government stakeholders
Facilitated connections with investors through roundtable
Convened an investor roundtable to showcase high-potential projects and position South Africa’s critical minerals as a global opportunity
- Shared sector insights and the country-level business case to build investor confidence and align expectations
- Facilitated direct dialogue between project developers and targeted investors to support deal flow and unlock investment
Participated in industry-wide engagements, e.g., Mining Indaba, and Mining & Resources Like-Minded Roundtable; to share emerging insights and secure buy-in from key stakeholders
Impact Achieved
16 high-potential midstream projects identified
with a cumulative investment requirement of +£1.5Bn
£6.3Bn identified market size potential
in 2040 for South Africa’s midstream processing sector
40+ Attendees to an investor roundtable held
with investors representing 25+ institutions
