Critical Minerals Sector Key To Driving Global Economic Growth

By Jacobs Botha, JOHANNESBURG

President Cyril Ramaphosa has emphasised the importance of the critical minerals sector in driving global economic growth and sustainability.

By leveraging key sectors such as mining, energy, and manufacturing, the President said South Africa is set to improve its business environment and attract much-needed investment.

He was addressing the African Minerals Forum hosted by the Business Council for International Understanding (BCIU) and Prosper Africa on the sidelines of the United Nations General Assembly (UNGA 79), in New York, USA, on Monday.

He highlighted that four months ago, South Africa held national general elections, which ushered in a Government of National Unity, where 10 political parties have come together to coalesce around a common agenda for economic growth and sustainable development.

President Ramaphosa underlined South Africa’s commitment to reducing greenhouse gas emissions and mitigating climate change through the country’s Just Energy Transition Plan. This plan aims to guide the shift from coal to renewable energy, while also ensuring equitable economic opportunities for affected communities.

“South Africa’s and Africa’s critical minerals sector has a crucial role to play in this regard, and we recognise the importance of collaboration with other countries to develop the potential of our critical minerals sector.

“The US in particular has established expertise in advanced mining technologies, automation and sustainability practices.

“We want to strengthen our ties with US companies and institutions to foster technological advancements, enhance supply chain efficiencies and attract investment into our mining sector,” the President said.

The President also emphasised that South Africa strongly endorses the United Nations Secretary-General’s position paper on Critical Energy Transition Minerals, where he highlights the importance of beneficiation, benefit sharing, local value addition and economic diversification.

“It would not be an understatement to say that the minerals that lie beneath the soil of Africa are powering the green energy revolution. Thirty percent of the world’s proven critical mineral reserves are found in Sub-Saharan Africa.

“South Africa has substantial reserves of platinum group metals, manganese, vanadium as well as chromium.

“These resources are fundamental to the development of cutting-edge technologies that drive progress in various sectors. What will be critical is to ensure that this progress does not leave Africa behind,” he said.

The President stressed the need to avoid perpetuating colonial-era exploitation, where African countries primarily export raw minerals. He said that by focusing on beneficiation and domestic processing, African nations could see significant economic growth.

President Ramaphosa highlighted that beneficiation and local processing of critical minerals could increase the continent’s GDP by 12% or more by 2050.

He cited estimates suggesting that African countries could generate USD 24 billion annually in GDP and create 2.3 million jobs by investing in mining beneficiation and domestic processing.

President Ramaphosa highlighted the strides made by SASOL, South Africa’s flagship petrochemical company, in leading green hydrogen technologies research and development.

“As the global automotive industry moves towards Electric Vehicles and New Energy Vehicles, we are leveraging our rich experience with automotive production to get some of the world’s leading automotive manufactures with a footprint in South Africa to produce more their green vehicles in our country,” he said.

Despite improvements in the beneficiation of South Africa’s mineral exports, President Ramaphosa admitted that more needs to be done.

He underscored the country’s commitment to creating a supportive policy framework for the critical minerals sector, focused on streamlining regulations, fostering innovation in mining technologies, building workforce skills, improving transport and logistics infrastructure, and incentivising investment.

South Africa’s five-point policy approach aims to create a supportive environment for the critical minerals sector. This includes simplifying regulations, supporting research and development in mining technologies, investing in workforce skills, improving logistics infrastructure, and incentivising domestic and international investment.

“South Africa also has a beneficiation strategy that seeks to translate the benefits of our country’s mineral endowments into a national competitive advantage.

“As the UN Secretary-General’s paper has noted, Critical Energy Transition Minerals can transform economies, create green jobs and foster sustainable local, regional and global development,” he said.

President Ramaphosa further stressed that for the potential of critical minerals to be fully realised, both mineral-producing nations and their end-user countries must embrace inclusivity.

He emphasised the importance of creating decent work opportunities, eradicating exploitative practices such as child and forced labour, and ensuring human rights protections.

Local beneficiation and industrialisation were highlighted as priorities, alongside environmental safeguards to ensure sustainable extraction practices.

The President urged for a long-term focus on inter-generational equity, recognising that critical minerals are vital for solving global challenges like climate change, energy, and food insecurity.

He called on US companies to collaborate in fostering sustainable development.

“By leveraging our respective strengths, pursuing strategic collaborations, and implementing supportive policies, we stand ready to meet the demands of the global market and drive sustainable development.

“I call on US companies and investors to join us on our journey,” he said.

SAnews.gov.za