Gwede Mantashe highlights the importance of foreign investment in South Africa's mining industry
Foreign investment remains key to the growth of South Africa’s mining and energy sectors
Image: GCIS
Foreign investment remains key to the growth of South Africa’s mining and energy sectors, according to Mineral and Petroleum Resources Minister Gwede Mantashe.
During a visit to Orion Minerals’ copper project in Prieska, Northern Cape, Mantashe emphasised the crucial role of global capital in unlocking the country's mineral wealth. The project is expected to start copper production within two years.
“Orion is important because it reflects the interest of foreign direct investment,” Mantashe said in an interview with public broadcaster SABC.
"It is an Australian company that is very interested in producing copper here, and we want to encourage them to do that. It is important for South Africans to always appreciate that attracting an investor is quite a huge effort, and it is very important for society to have investment in their society.”
IOL previously reported that South Africa’s mining sector faces ongoing challenges, threatening its export potential and overall viability. According to Statistics South Africa (Stats SA), mining production fell by 2.8% year-on-year in March, following a sharper 9.7% decline in February.
“Seasonally adjusted mining production declined by 4.5% in the first quarter of 2025 compared with the fourth quarter of 2024,” Jean-Pierre Terblanche, principal service statistician at Stats SA, told IOL two weeks ago.
“A decline in platinum group metals was the biggest drag on overall growth, declining by 13.7%. Nickel, copper, chromium ore, coal, and gold also performed poorly in the first quarter.”
Last month, the International Monetary Fund (IMF) also lowered its 2025 growth forecast for South Africa from 1.5% to 1%, citing increased global economic uncertainty and a rise in protectionist trade policies around the world.
mthobisi.nozulela@iol.co.za
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