Mhlauli Touts Critical Minerals Plan as Mining Lifts GDP 0.8%

Econ Desk

September 13, 2025

3 min read

Deputy Minister Nonceba Mhlauli says mining drove 0.8% GDP growth in Q2 and remains central to jobs and foreign earnings.
Mhlauli Touts Critical Minerals Plan as Mining Lifts GDP 0.8%
Image by Lubabalo Lesolle - Gallo Images

Deputy Minister in the Presidency Nonceba Mhlauli opened the Ferroalloys 2025 Conference in Sandton saying mining remains “the backbone” of South Africa’s economy and a springboard for a low-carbon future.

She told delegates that second-quarter GDP grew 0.8%, with mining adding 0.2 percentage points as output jumped 3.7%, the fastest pace since early 2021. Mhlauli argued the figures prove the sector’s continued centrality to growth, jobs, and foreign earnings.

Manganese and chrome have been tagged “high-criticality” in government’s new Critical Minerals and Metals Strategy, she said. The manganese industry alone employs more than 14 000 people and produced 21 million tonnes last year, with over 90% shipped abroad.

South Africa also turned out an estimated 4.34 million tonnes of ferroalloys in 2023, earning R8.3 billion in export revenue. Yet Mhlauli warned that high input costs, rail-and-port bottlenecks, and weak local steel demand threaten competitiveness. Operation Vulindlela reforms in energy, logistics, and pricing are aimed at reversing the slide and spurring domestic beneficiation.

“The industry is at a crossroads,” she concluded, urging tighter collaboration among government, business, labour, and regional partners such as Southern African Development Community (SADC), BRICS, and the African Continental Free Trade Area (AfCFTA) to keep South Africa at the forefront of sustainable mineral processing.

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