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South Africa is at a pivotal juncture. It can choose to remain a supplier of raw commodities that enrich other countries or become a global leader in mineral-based industries, says globally rated metals and mining analyst and portfolio manager, Shamim Mansoor, who spoke to Mining Weekly in a Zoom interview.
By focusing on mineral-based beneficiation, South Africa can transform its economy and solve this country's financial problems, Mansoor, who has her own consultancy business specialising in metals and mining, asserts. (Also watch attached Creamer Media video).
"Beneficiation is not just an economic strategy – it's a national imperative to turn the wealth in the ground into wealth for our population," she says.
The value addition envisaged includes turning platinum into hydrogen fuel cells, manganese into battery materials, iron-ore into steel, coal into chemicals, and chrome into stainless steel. But such value addition can only be realised with the support of reliable logistics, affordable and reliable energy, and efficient licensing.
"These are critical to us monetising our mineral endowment and unlocking value for the people of South Africa, who continue to struggle.
"We need both government and business to step up and collaborate on the optimal solution," says Mansoor while noting that mining has always been the bedrock of the South African economy, contributing to the country's GDP, and driving industrialisation, socioeconomic growth and job creation.
Data published by Minerals Council South Africa for the nine months to 30 September 2025 highlights, she points out, that:
Mining contributed 5.8% of total nominal GDP, estimated at R439-billion.Mineral ores and related exports contributed approximately 52% of the value of overall South African exports.Mining contributed more than R100-billion to the national fiscus in the form of corporate taxes, royalties, VAT payments, and through personal income tax payments by mining sector employees.The mining sector provided direct employment to an average of 469 765 people. This represented about 4.5% of total formal sector employment.
But while mining is economically crucial, its competitiveness is constrained by rapidly increasing power tariffs, underperforming rail and ports services and bottlenecks in the licensing system.
Mansoor recalls that at this month's Investing in African Mining Indaba, Eskom CEO Dan Marokane stated that Eskom now has over 98% coverage in terms of supply and demand but the exorbitant electricity cost (over 900% increase since 2008) has led to more than a dozen smelters shutting down in recent years leading to significant job losses.
"In January, the National Energy Regulator of South Africa approved a 35% reduction in electricity tariffs for 12 months for Samancor and Glencore Merafe smelters. But mining by nature is electricity intensive and I believe this reduction in tariffs needs to be approved for all smelting and refining processes across the industry as ferrochrome is not the only affected process. But it begs the question how these cuts will be funded and is this sustainable.
"Michelle Phillips, Transnet CEO, highlighted at the Mining Indaba that Transnet continues to face issues with asset reliability and funding. It has applied for government funding and has engaged in public-private partnerships but in her words, Transnet still has a long way to go.
"In my view, whether we look at Eskom or Transnet, the issue boils down to funding. Can government step in or does there need to be public-private partnerships? I believe these two options are not mutually exclusive. We need both government and business to step up and collaborate on the optimal solution."
MINERAL EXPLORATION
Another significant challenge, Mansoor...

Turning wealth in ground into wealth for South Africa’s people is a must, says analyst

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