Critical Minerals, partnerships, and transformation were the key underlying themes to our participation at the just-ended Mining Indaba. Mining’s significance to SA’s economy can’t be overstated.
It is a strategic pillar of SA’s economy as it employs over 470,000 people and contributes to local economic development in poor communities. Its contribution to nominal GDP rose to R442.7 billion in 2024, reinforcing its role
as a driver of growth, export revenue, and foreign currency earnings.
Against this background, how do we ensure that we use our resources to accelerate and improve the country’s
socio-economic trajectory? Against the strengths of its experience and financial
strength, the corporation’s message to the just-concluded mining indaba was unequivocal. Our engagements as
panellists on various forums provided us the opportunity to share insights on our investment strategy, critical minerals
game plan, and our continental strategy, among others.
IDC and FPI sign MOU
On creating partnerships, we signed a memorandum of understanding (MOU) with Fonds De Promotion De L’Industrie (FIP). The FPI is a public financial institution under the DRC’s Ministry of Industry, created in 1989 and restructured in 2009 to promote local industrial development and reduce dependence on imports. This MOU is the first of its kind between an SA and DRC institution and is aimed at fostering collaboration in areas of mutual economic interest between South Africa and the DRC for the benefit of the region. The IDC’s Continental Strategy has identified the DRC as a key priority country for proactive engagement – the objective is to strengthen and develop regional value chains characterised by value addition, regional cooperation, local development, and intra-regional trade, in alignment with the African Continental Free Trade Area (AfCFTA). Congo is Africa’s biggest copper producer, and known to have the world’s largest cobalt reserves.
The FIP is primarily funded through the Taxe de Promotion de l’Industrie (a levy collected on imports and industrial goods in the DRC), with a balance sheet that supports financing allocations. Since its inception, FPI has to date funded over 600 projects across the Democratic Republic of Congo (DRC), primarily in agro – industrial sectors and infrastructure rehabilitation.
IDC, European Union, and KfW ink partnership deal
The IDC, the European Union (EU), and the German Development Bank (KfW) announced the signing of a trilateral partnership to develop grant, equity, and concessional capital for investment in regional minerals and metals value chains at the SA-EU Investment Seminar held on the fringes of the just-ended Mining Indaba.
The trilateral partnership aims to establish a facility that will combine prospective EU grant support with development finance from KfW and other investors. The facility will be designed to leverage the IDC’s expertise in identifying and investing in selected projects, thereby reinforcing its role in the beneficiation of the region’s mining and mineral endowments.
JMEF – a flagship for mining transformation
IDC used the Indaba to reinforce its commitment to transforming SA’s mining sector by breaking barriers that inhibit aspiring black entrepreneurs from breaking into mainstream transformation. And one persistent structural barrier has been the high cost and risk associated with mineral exploration, which has historically excluded junior miners. Notably, SA’s share of global mineral exploration expenditure has declined to less than 1%, down from around 5% two decades ago, underscoring the severity of the exploration funding gap.
To address this challenge, the IDC, in partnership with the Department of Mineral Resources and Energy and the Council for Geoscience, launched the R400 million Junior Mining Exploration Fund (JMEF) in 2024. The fund is designed to expand access to early-stage exploration capital for more than 50% black owned junior mining companies, through nonrepayable grants that are convertible to equity upon the discovery of a viable ore body. The response has been strong.
The first funding window, which closed in mid 2025, attracted over 110 applications, with eight projects approved, accounting for R160 million, or 41.2% of the total fund value. These projects span five provinces and target minerals including copper, nickel, lithium, graphite, and rare earth elements, reflecting both regional diversity and alignment with future-facing commodities.
For many beneficiaries, the JMEF represents a first meaningful entry point into the mining value chain—unlocking opportunities that were previously inaccessible due to capital constraints. Early indications suggest that several projects have progressed to advanced geological work, including geophysical surveys and drill target identification, signalling tangible momentum
Anglo commits R600m to JMEF
Announcing a R600m commitment to the JMEF, mining behemoth Anglo American has become the first private sector company to capitalise the JMEF. Highlighting the catalytic role that well structured public sector partnerships can play in advancing inclusive growth, Anglo CEO Duncan Wanblad commended the IDC and DMPR for establishing the fund.
And as South Africa positions itself within global mineral supply chains, critical to the energy transition, sustained collaboration between the government, development finance institutions and the private sector will be essential. Replicating and scaling such partnerships and funding models will be key to building a mining sector that is not only globally competitive, but also more equitable, resilient, and sustainable.
IDC invests R325m in Rare Earths project
South Africa’s drive to develop its untapped mineral reserves is entering a critical stage. In a landmark transaction that is certain to impact the development of SA’s Critical Minerals landscape, the IDC announced a R325 million investment in a domestic rare earths project. Located in the Northern Cape the Frontier Rare Earths’s Zandkopsdrift project aims to help the European Union reduce its dependence on China for critical minerals. The IDC’s equity investment will fund a definitive feasibility study for Zandkopsdrift, which aims to produce rare earth products and battery grade manganese from 2030. Said Rian Coetzee, IDC’s executive for industrial planning and project development. “The investment in Frontier’s local subsidiary “reflects our mandate to support projects that advance Southern Africa’s industrialisation and critical minerals strategy.”
China currently dominates the processing and refining of rare earth elements which are found in permanent magnets used in everything from smartphones, drones, electric vehicle motors and wind turbines. The US, EU and others are trying to develop alternative sources of supply.
In another significant boost to the Zandkopsdrift project, Frontier which is spearheaded the development of the project announced on the eve of the opening of the 2026 Mining Indaba that it had signed an agreement with Carester SAS, which will deploy proprietary extraction technology at the mine and process some of the future off take at a separation plant being built in France. According to Frontier, revenue generated by the manganese byproduct means Zandkopsdrift is “expected to be the lowest cost producer of rare earths outside China.