Anglo American’s R600 Million Investment Sparks New Era for South African Mining

Johannesburg, 14 October 2025 — Anglo American has announced a landmark R600 million investment into a junior exploration fund, signaling a renewed commitment to revitalizing South Africa’s mining sector. The announcement, made by CEO Duncan Wanblad at the Joburg Indaba mining conference, marks a strategic effort to address the country’s long-standing exploration deficit and unlock its vast mineral potential.

Bridging the Exploration Gap

South Africa’s mining industry, once a global leader, has seen exploration activity dwindle due to policy uncertainty and regulatory challenges. Currently, the country accounts for less than 1% of global exploration budgets—far behind Australia (13%), Canada (15%), and Latin America (25%), according to S&P Global Market Intelligence.

Wanblad emphasized the urgency of reversing this trend: “We believe in exploration,” he stated, noting that the lack of new discoveries has led to a “lost generation” of mines. With mine development taking up to 17 years from discovery to production, the investment aims to rebuild the exploration pipeline and ensure long-term sustainability.

Kumba Iron Ore: A Strategic Anchor

Despite divesting from several South African assets, Anglo American remains firmly committed to Kumba Iron Ore, its flagship operation in the country. Led by CEO Nompumelelo “Mpumi” Zikalala, Kumba produces high-grade iron ore with a unique ferrous content that supports low-carbon steelmaking—an increasingly valuable trait in a decarbonizing global economy.

Wanblad praised Kumba’s innovation, particularly its adoption of ultrahigh dense media separation (UHDMS) technology, which extracts premium ore from previously discarded material. “What Kumba produces is a differentiated product in the market today,” he said, adding that UHDMS will extend mine life and enhance sustainability.

Africa’s Role in Anglo’s Global Strategy

Anglo American’s renewed focus on Africa reflects the continent’s untapped mineral wealth. Wanblad described Africa as “one of the most under-explored, highly valued continents” for minerals, including critical metals like cobalt, lithium, and rare earth elements essential for the energy transition.

South Africa, with its established infrastructure and mining expertise, is positioned as a strategic hub for Anglo’s broader African ambitions. “Part of our strategy here is not only South Africa itself but also using South Africa as a mining window into the balance of Africa,” Wanblad explained.

Overcoming Structural Challenges

While the investment is a positive step, Wanblad acknowledged that several systemic issues must be addressed to attract further capital:

• Inadequate rail and logistics infrastructure
• Unreliable electricity supply
• Absence of a modern cadastral system for mining rights
• Need for a more supportive exploration policy framework

He stressed that without policy reform, South Africa risks missing out on the capital-intensive investments required for mining development. A modern, transparent cadastral system—standard in countries like Australia and Canada—would provide clarity and boost investor confidence.

A Turning Point for the Sector

Anglo American’s R600 million commitment is more than a financial injection—it’s a vote of confidence in South Africa’s mining future. By prioritizing exploration, embracing innovation, and calling for regulatory reform, the company is helping to lay the groundwork for a more resilient, competitive, and sustainable mining industry.

As Wanblad concluded, the time to act is now: “It’s not too late for South Africa to transform its mining sector through renewed exploration efforts.”