South Africa’s mining industry is showing early signs of recovery, but logistical and energy constraints continue to weigh on growth, Mineral Resources and Energy Minister Gwede Mantashe told delegates at the Joburg Indaba on Thursday.

Mantashe said mining output rose 3.7% in the second quarter of 2025, adding 0.2 percentage points to national GDP, while employment in the sector edged up by 0.7%. He credited platinum group metals (PGMs), gold, and chromium for driving the rebound and confirmed that government will expand its Junior Mining Exploration Fund to include gold as a priority mineral.

However, the minister warned that the recovery remains fragile due to ongoing port and rail bottlenecks and high electricity costs. Government is considering preferential power tariffs for energy-intensive producers such as ferrochrome, manganese, and steel smelters to help rebuild local beneficiation capacity.

Mantashe said work is advancing on a new Mineral Resources Development Bill to create a more investor-friendly framework, while the rollout of a modern mineral rights cadastre – starting with a pilot in the Western Cape – is under way. Since the previous Indaba, more than 2 300 new mining applications have been processed.

The minister also raised concern over deteriorating mine health and safety performance, especially in gold and PGM operations, calling for renewed co-operation between government, industry, and labour to achieve: “zero harm.”

“Mining remains central to South Africa’s economy,” Mantashe said: “but our future competitiveness depends on solving the infrastructure and energy crises that hold us back.”