South Africa’s spending on mineral exploration has fallen for the seventh consecutive year, highlighting ongoing challenges in efforts to revive the country’s mining sector.
Although South Africa remains Africa’s largest exporter of mineral products, companies are gradually allocating smaller budgets to prospecting activities, which are critical for identifying and developing future mines, Bloomberg reported.
As a result, competing mining destinations, including Zambia and the Democratic Republic of the Congo, are capturing a growing share of exploration capital flowing into Africa.
Exploration expenditure in South Africa declined 5.3% in 2025 to 738 million rand ($43.9 million), according to data released this week by the national statistics agency, measured at 2015 constant prices. Over the past three decades, investment in exploration has dropped by more than 85%.
The Minerals Council South Africa, the industry’s main lobby group, recently warned that exploration is the “lifeblood” of the mining sector.
The continued decline in spending is “deeply troubling for our sector, and it needs urgent attention,” the organisation said. Its members include major mining companies such as Valterra Platinum Ltd., Harmony Gold Mining Co. and Exxaro Resources Ltd..
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A weak junior mining and exploration segment is contributing to what analysts describe as the effective collapse of the industry’s future project pipeline.
In a recent report, Cape Town–based Economic Research Southern Africa said the government could reinvigorate exploration by introducing tax incentives, creating a transparent database of available mining rights, and increasing funding for geological mapping.
The Department of Mineral and Petroleum Resources has outlined a strategy aimed at reversing the trend. Published last year, the plan seeks to increase South Africa’s share of global exploration spending to 5%, up from its current level of less than 1%.
Despite concerns over the long-term outlook, South Africa remains a key global supplier of several commodities, including coal, gold, iron ore, manganese, chrome, and platinum-group metals. Reflecting the sector’s continued importance, total mineral sales rose 7.3% last year to 861 billion rand.
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Image Credit: Bloomberg
