JUNIOR MINING
Access to critical minerals is of national interest to most nations.
The push to revive demand for natural diamonds coupled with the global need for critical and strategic minerals offers opportunities for growth in the junior mining sector. Modern Mining recently spoke to Errol Smart, Vice President of the South African Diamond Producers Organisation (SADPO), about opportunities unfolding in the junior and emerging mining space. Investment in exploration According to Smart, the country’s mining sector is shrinking. South Africa, which is blessed with a vast array of minerals, should be a mining powerhouse, but remains burdened by bureaucracy, red tape, power, water and supply chain challenges. “While exploration is the lifeblood of future mining activity, there remains the challenge of attracting capital investment for exploration and, if one goes by the Fraser Institute, South Africa is an unattractive investment environment. Despite its best intentions, the country is mired in red tape, which is a deterrent to foreign investors. Geologically, we have a vast array of some of the most indispensable minerals; Junior mining – opportunities for growth? By Nelendhre Moodley
however, the regulatory environment remains highly unattractive. Our neighbours - Namibia, Botswana and Angola - are winning over investors with their welcoming attitude and enticing regulatory policies.” South Africa’s ability to attract mineral exploration investment has waned over the past few years. In 2023, the country attracted $117 million (R2 billion) in exploration expenditure, significantly lower than the government’s target of 5% set in 2019. The value of mineral exploration in South Africa has stagnated for the past five years, remaining between R1.1 billion and R1.2 billion in real terms. In 2024, expenditure on mineral exploration was only R781 million, down from a peak of R6,2 billion in 2006. Junior and emerging mining companies in South Africa account for roughly 10% of the total mining
36 MODERN MINING www.modernminingmagazine.co.za | February 2026
Made with FlippingBook flipbook maker