MINERAL AND PETROLEUM RESOURCES REPUBLIC OF SOUTH AFRICA SPEAKING NOTES BY THE HONOURABLE DEPUTY MINISTER OF MINERAL AND PETROLEUM RESOURCES PHUMZILE MGCINA China Mining Conference and Expo International Ministerial Forum 24 October 2025
Master of Ceremonies, Your Excellencies, Ministers and Deputy Ministers Members of Diplomatic Corps Distinguished Guests It is an honour to represent the Republic of South Africa in this important International Ministerial Forum – an invaluable platform for engagement among nations on the future of the mining industry. Your Excellencies, mining as we know it is evolving. Once defined by gold and diamond extraction, the mining industry is rapidly diversifying into a technologically advanced sector encompassing platinum, manganese, coal, chrome, iron ore, and a growing range of rear earth elements. As highlighted yesterday, the global demand for these minerals is souring. This surge has intensified competition and, at times, geopolitical tensions over access, control, and management of these resources. This reality underscores the need for greater collaboration in advancing sustainable and inclusive mining development. This forum, therefore, comes at a critical point in the history of mining, where we can collectively shape strategies that deepen cooperation and promote responsible growth across the sector. The South African mining industry has long been a cornerstone of our national development. Known globally for its rich history in gold and diamond mining, the industry has largely driven our industrialisation and continues to play a vital role in sustaining our economic and fiscal health. Despite its long heritage, gold remains a major contributor to our economy. Our study on the State of Mining has shown that South Africa is currently the thirteenth (13th) largest gold producer globally and fourth (4th) largest in Africa, with approximately 40% of our gold exports destined for China. Similarly, despite the shifting global demand patterns and the rise of synthetic diamonds, South Africa’s natural diamond sector remains globally competitive due to the superior quality and prestige of its stones. Projects such as the Cullinan and Venetia, among others, continue to produce exceptional diamonds, supported by significant investment aimed at extending their operational lifespans. This underscores our confidence that the diamond sector remains well-positioned to serve the markets. Beyond gold and diamonds, South Africa also holds the world’s largest known reserves of platinum group metals (PGMs), manganese, and chrome. These minerals are not only vital to our domestic economy but also integral to the global transition towards cleaner and more sustainable technologies. A key priority for us is rebalancing global mineral value chains in a way that benefits all nations – particularly producer countries. Central to this is our commitment to driving value addition closer to the point of production. The reality confronting many resource-rich nations is that much of what we mine is exported in raw form. Consequently, the greater share of value is captured elsewhere in the global value chain. This must change. In this context, and as part of our G20 Presidency, South Africa is engaging with G20 members on a Framework for Shared Prosperity and Sustainable Development in the minerals sector. This framework rests on six interrelated strategic pillars, which collectively aim to make mineral resources a true driver of shared growth. Allow me to highlight at least three of these pillars, which we think are central to our discussions today. Firstly, the framework calls for mobilising investment in infrastructure and processing facilities within producer countries. This will allow local beneficiation, stimulate industrialisation, and create employment opportunities, thus ensure that the wealth of the earth translates into tangible benefits for our people. Second, it seeks to enhance the resilience of global mineral supply chains by promoting diversification of sources, routes, and markets. In doing so, it encourages open trade and predictable investment flows, ensuring that developing nations participate meaningfully in and benefit equitable from these value chains. Lastly, the framework underscores the importance of developing human capital and institutional capacity across the entire minerals value chain. The truth is that without skilled professionals and effective institutions, resource-rich countries cannot fully harness their potential. We, therefore, make a plea to developed nations to partner with us in investing in people - from miners and engineers to regulators and researchers – with a particular emphasis on youth and women. This is essential to building a future that is not only innovative and sustainable but also socially inclusive. Your Excellencies, these are some of the proposals that South Africa places before this Forum for consideration, as guided by the theme of this year’s China Mining Conference - “Connect and Collaborate, Co-Build and Co-Share”. We remain confident that, through continued collaboration and shared commitment, we can transform our collective aspirations into reality. Together, we can shape a just, inclusive, and sustainable global mining industry – one that drives industrial growth, supports human development, and uplifts all nations. I thank you.