Mineral and Petroleum Resources Minister, Gwede Mantashe recently presented the department's R2.86bn budget in Parliament.
Operating allocations include:
– R70.46m to the South African Diamond and Precious Metals Regulator.
– R94.98m for the Petroleum Agency South Africa (PASA).
– R666.9m for the Geology Council.
– R328.7m for Mintech.
– R4.89m for the Mines Health and Safety Council.
Project-specific allocations include:
– R23.48 million for the Mine Rehabilitation Research Project.
– R140.87 million for the rehabilitation of abandoned and ownerless mines.
– R48.1 million for the implementation of the shale gas project
– R33.83 million for the mine water infiltration project.
– R31.12 million for the Artisanal and Small-Scale Mining Project.
unstable times
The budget is the government's response to global challenges posed by conflict and a slowing economy, Mantashe said.
“We are presenting this Budget during a difficult period in the global economy. A time when conflict is rife in the Middle East and its shocks are being felt far beyond our borders, destabilizing global energy supply chains and casting a long shadow over our own economic recovery.
“In this era, where energy security is intrinsically linked to national stability, we cannot stand on the sidelines and become passive observers.
“This budget is our strategic response to these geopolitical realities, a commitment to protect the livelihoods of our people, secure our energy future and shore up our economy against the rising tide of international instability and price volatility,” Mantashe said.
At the heart of the strategic response is the acceleration of the upstream petroleum industry and a determined effort to expand South Africa's refining capacity, despite what the minister described as “persistent pressure from some environmental lobby groups”.
“The fact is that petroleum security is not a theoretical debate, but an economic necessity and a national imperative.
“For this reason, it is imperative that we expedite the processing of the South African National Petroleum Company Bill (SANPC) to enable the full operation of SANPC as a strategic state-owned entity to enable meaningful and strategic state participation in the oil and gas sectors, as envisioned in the Upstream Petroleum Resources Development Act (UPRDA).”
SA fuel supply stable
In the same vein, he moved to calm any public concerns over fuel supply.
“While global fuel supply challenges remain, I would like to reassure South Africans that we have sufficient fuel supply to meet demand, and our fuel supply remains stable.
“Working closely with industry stakeholders, we will continue to monitor the supply situation and ensure continued transparency in this regard,” he said.
Mining remains the cornerstone of SA
Mantashe said that despite global headwinds, the sector is demonstrating resilience and “remains the cornerstone of our economy”.
“South Africa's mining gross value added is set to reach R477bn in 2025, contributing about 6.3% to the country's gross domestic product (GDP).
“This growth was largely driven by strong iron ore and manganese exports, improving commodity prices and strong regional performance during the first three quarters of the year.
“Mining royalties collected in the fiscal department in 2025 were approximately R11.8bn, representing an 11% increase from the R10.6bn recorded in 2024,” he said.
The minister acknowledged that despite continued resilience, the sector still faces challenges with rising power costs, causing “severe operational pressure on mining companies, particularly deep-level gold and platinum group metals (PGM) operations”.
Minerals and Metals Strategy
Turning to the Critical Minerals and Metals Strategy, Mantashe told the House that the era of passive policy documents is over.
“House Chairperson, last year, we made a solemn commitment to this House that the Critical Minerals and Metals Strategy will not become a document gathering dust on a shelf. It must, we said, get a shovel in the ground and become a magnet for investment.
“Today, we are pleased to share with you that the era of passive policy is over. We have decisively moved from blueprint to battlefield, working aggressively on the framework to secure a seat at the head of the global critical minerals dialogue and transactions.
He stressed, “We are turning our mineral wealth into a catalyst for industrialization, investment and economic growth. I can assure you that we are not just planning for the future, we are working on it.”
investment in geology
One of the key pillars of the strategy is geology mapping and exploration.
The minister said that through the Council for Geosciences (CGS), the government is “investing in high-resolution geoscientific data with the aim of de-risking exploration and attracting investment”.
“We can report that through its integrated and multi-disciplinary geoscience mapping programme, CGS has increased national coastal mapping coverage from less than 5% in 2019 to a cumulative 20% in the 2025/26 financial year.
“CGS will continue to expand this flagship program into both onshore and offshore domains, with a focused effort on generating and disseminating high quality pre-competitive geoscience data.
“This data can be accessed through the Virtual Core Library – launched at this year’s Mining Indaba – which acts as a strategic national asset, designed to transform how South Africa unlocks value from its geological assets,” Mantashe revealed.
In addition, the R400m Junior Mining Exploration Fund has funded some 13 projects, with exploration already underway at sites including Giyani and Bothville.
health and safety
Mantashe told the House that the Mineral Resources Development Bill is undergoing legal certification at the Office of the Chief State Law Adviser before going to Cabinet for approval.
It is estimated that the bill will be introduced in Parliament in the second quarter.
The Mine Health and Safety Bill, which aims to include compliance as a core business function “rather than an administrative exercise”, is before Parliament.
“Once implemented, this legislation will strengthen accountability, tighten operational requirements, improve enforcement measures and further our commitment towards achieving the goal of zero harm.
“Despite the ongoing review of policies, it is encouraging that the region is already making progress towards achieving the target of zero harm, as shown by the historic 41 deaths recorded in 2025.
“The Ekapa disaster, which took the lives of five people, is a stark reminder that complacency has no place in this industry.
“Investigations into the disaster are already underway, and we will ensure that no stone is left unturned in uncovering the facts surrounding the disaster,” Mantashe said.
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