Motsepe Says Public-Private Partnerships Are Restoring South Africa’s Mining Competitiveness

Patrice Motsepe says stronger cooperation between government and the private sector is helping restore South Africa’s position as a globally competitive mining destination, supported by improvements in energy reliability and freight logistics.

Speaking on the sidelines of a conference in Nairobi, the chairman of African Rainbow Minerals said collaboration between the administration of President Cyril Ramaphosa and business organisations had contributed to stabilising critical infrastructure challenges affecting the mining industry.

Improved Infrastructure Boosts Mining Confidence

According to Motsepe, coordinated engagement between government and business groupings, including Business for South Africa, has played a key role in addressing operational constraints that previously weakened investor confidence.

He noted that the reduction in electricity disruptions and improvements in rail and freight systems are helping position South Africa to benefit from stronger global commodity markets.

“Part of what should take place in those partnerships is for the CEOs of the mining industry to keep telling the government what the changes are, the improvements and the areas that will ensure that South Africa is a globally competitive destination,” Motsepe said.

Mining Stocks Outperform Broader Market

South Africa’s mining sector has shown strong market performance in 2026, with the Johannesburg industrial metals and mining index rising by approximately 30% this year, significantly outperforming the broader FTSE/JSE All Share Index.

The gains reflect renewed investor optimism around commodity markets, infrastructure improvements and the country’s broader mining outlook.

Exploration Spending Remains A Major Concern

Despite the improving operational environment, Motsepe warned that declining exploration investment continues to pose a serious long-term challenge for the sector.

Data from Statistics South Africa shows exploration investment declined for a seventh consecutive year in 2025, falling 5.3% to R738 million in constant 2015 prices.

Prospecting expenditure in South Africa has reportedly declined by more than 85% over the past three decades, raising concerns about future mineral discoveries and long-term production sustainability.

Industry stakeholders have repeatedly warned that insufficient exploration activity could undermine the country’s ability to maintain mining output and attract future investment.

African Rainbow Minerals Plans Further Investment

Motsepe said African Rainbow Minerals intends to invest several billion dollars into South African mining projects, although no timeline was disclosed.

The company maintains interests across coal, iron ore and platinum group metals and also holds a 10% stake in Harmony Gold.

South Africa Seeks To Strengthen Mining Sector

Mining remains one of South Africa’s most strategically important industries, contributing significantly to export earnings, employment and foreign investment.

The government has increasingly prioritised collaboration with the private sector to address long-standing challenges linked to electricity supply, logistics bottlenecks and regulatory uncertainty.

Analysts say continued infrastructure reform, improved policy certainty and renewed exploration activity will be critical if South Africa is to strengthen its competitiveness against emerging mining destinations globally.