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South Africa's mining constraints need urgent attention, Minerals Council tells Indaba

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South Africa's mining sector remains constrained by regulatory and operational bottlenecks that need urgent attention to unlock full potential through the attraction of long-term and sustainable investment in exploration and mines.

Mining and its direct suppliers support nearly 900 000 jobs and the livelihoods of 3.6-million South Africans.

Mining is a powerful multiplier and growing mining grows the economy and jobs.

But the way to grow the sector is through investment, which needs a globally competitive regulatory and operating environment, Minerals Council South Africa CEO Mzila Mthenjane made clear during a crucial 2026 State of the Mining Nation media briefing on day-one of the well-attended Investing in African Mining Indaba in Cape Town.

The members of Minerals Council South Africa account for 90% of South Africa's annual mining turnover.

The mining sector cannot improve investor confidence alone. It is only through partnerships, particularly with the government and, more specifically, the Department of Minerals and Petroleum Resources (DMPR), that a collaborative approach to creating a conducive regulator and operating environment can be created and sustained, Mthenjane emphasised.

Described as "disappointing" was that the first iteration of South Africa's Mineral Resources Development Bill, which was gazetted in May 2025.

The Bill, Minerals Council pointed out, did not encourage or sustain the growth and investment that the mining industry needs to enable it to realise its full potential to create employment, stimulate the economy and fulfil its social mandate.

The lifeblood of mining is exploration. Without exploration, the mining sector has no future. In South Africa, exploration expenditure was R781-million in 2024, down from a peak of R6.2 billion in 2006, according to Stats SA data.

"This is deeply troubling for our sector and it needs urgent attention," Minerals Council South Africa pointed out.

Since May last year, the council has held talks with the DMPR on our submission regardng areas of concern for our members with the Bill. These engagements were generally constructive. We anticipate the revised Bill, which we expect to be published in coming weeks, will reflect our inputs to ensure mining attracts investment in exploration, mine development and existing operations.

"We are cautiously optimistic but if the revisions mirror the first iteration of the Bill, we will continue robust engagements with the DMPR," Mthenjane outlined.

Encouraging progress has been made in the business and government partnership in Operation Vulindlela under the Presidency to address three key crises that South Africa faced in 2020.

Railway performance has stabilised and is showing improvement, which is important for coal, chrome, iron-ore and manganese exports. Electricity generation has improved, with the last loadshedding experienced in May 2025.

Operation Vulindlela initiatives to address crime and corruption helped secure South Africa's removal from the Financial Active Task Force grey list and contributed to an S&P credit rating upgrade in the last quarter of 2025.

The underlying structural reforms, particularly in electricity around the creation of a separate transmission company to own and manage the grid, to ensure the introduction of the private sector in energy generation and participation on railways and at harbours must not be delayed or changed because it will damage the green shoots of positive sentiment emerging towards South Africa.

"South Africa's mineral endowment is extraordinary. With the right reforms, strong partnerships and policy certainty, we can attract investment, create jobs and build ...

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

The balance sheet of New York- and Toronto-listed gold and copper mining company Barrick is in phenomenally good shape, with future capital investment programmes well-funded.

Significant excess cash flow is being generated, with the last quarter of last year chalking up records across almost every financial metric, outgoing Barrick senior executive VP and CFO Graham Shuttleworth noted during his upbeat swansong presentation covered by Mining Weekly. (Also watch attached Creamer Media video.)

The combination of sequential increase in production and record-high gold prices added to an already strong financial foundation and set up the company with considerable flexibility to continue delivering significant cash returns to shareholders.

Infographics displayed a 45% revenue increase, driven by increased production and sales, and a 21% increase in realised gold price.

Major earnings nearly doubled from the prior quarter, and reported was record quarterly cash flow, record free cash flow, record earnings per share and a record cash balance.

Cash of $7.7-billion flowed from operations, $3.9-billion being free cash, which was up 71% and 194% from a year ago – another company record.

These results are super impressive amid Barrick's 2025 gold sales volume being 13% lower and a key asset not operating for most of the year.

Moreover, attributable capital ended 2025 below the low end of guidance owing to engineering partners coming on board in the refining of spending schedules, particularly at Barrick's biggest projects – at Reko Diq in Pakistan and Lumwana in Zambia.

Graphs highlighted during the presentation displayed Barrick's earnings before interest, taxes, depreciation and amortisation (Ebitda) increasing 53% on higher margins as the 21% gold price increase dropped to the bottom line.

Importantly, the attributable Ebitda margin steadily increased through the year, tracking the gold price higher and demonstrating the operating leverage the business provides to the gold price.

"All of this enabled the highest annual shareholder returns in Barrick history, with more to come," said Shuttleworth.

Barrick ended the year with net cash of $2 billion.

Of the $7.7-billion generation of operating cash flow, $3-billion was invested back into the business with the buyback of $1.5-billion of Barrick stock reducing the company's share count by 3%.

Third-quarter results saw the base dividend being increased by 25% to $0.125 per quarter and the strong annual results prompted the board to authorise a further 40% increase.

In addition, the board has determined that it will target paying out 50% of attributable free cash flow, incorporating a further discretionary component to reach the target.

On that basis, the board has authorised a fourth-quarter dividend payable in March, which is up 140% on the quarter-three dividend.

This new policy will replace the previous performance dividend policy and given the focus of cash returns to shareholders through increased dividends, with the board having decreed not to renew the annual share buyback programme.

Production increased from last quarter to the highest level of the year, which resulted in an 82% increase in Ebitda versus last year.

The base dividend was increased by another 40% and a new dividend policy adopted.

Cash flow for the quarter was up 96% from last year, and a year of record annual cash returns to shareholders was logged.

Preparation for an initial public offering (IPO) of Barrick's North American gold assets is moving forward.

"We're targeting to complete the IPO by late 2026," new Barrick president and CEO Mark Hill told the presentation.

Operational and financial achievements were, however, overshadowed by four fatalities.

"Our highest priority is that al...

Mining Weekly Editor Martin Creamer talks about the Minerals Council's view that South Africa’s mining industry is at a pivotal point in its evolution; BHP’s biggest-ever explorer-technology-data bootcamp being hosted in South Africa; and Joburg’s gold revival outlook strengthene

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

Platinum group metals (PGM) mining, refining and marketing company Valterra, which last week reported sharply rising earnings expectations for 2025, has delivered its strongest quarterly performance of the year in the three months to December 31.

The Johannesburg- and London-listed company, headed by CEO Craig Miller, on Thursday, February 5, reported increased production across all major PGM metrics.

Full-year PGM sales volumes of 3 454 300 oz were driven by higher above-guidance refined production of 3 412 000 oz.

The 2026 metal-in-concentrate and refined production guidance of three-million ounces to 3.4-million ounces is consistent with prior estimates.

Own-mined production increased by 1% to 594 600 oz on higher production from the Amandelbult mine, partially offset by lower production at the Mogalakwena, Unki and Mototolo mines.

Toll-refined PGM production increased by 41% to 257 300 PGM ounces, primarily owing to the inclusion of Kroondal as toll-refined production from December 2024.

Nickel production increased by 12% to 7 098 t, while copper production decreased by 2% to 4 413 t.

Quarter-on-quarter nickel production increased by 14% and quarter-on-quarter copper production increased by 5%.

Total fourth-quarter chrome production increased by 17% to 298 000 t on higher chrome production at Amandelbult and improvements in chrome yields across Valterra's own operations.

Increased PGM sales volumes and realised basket price PGM sales volumes increased by 4% to 1 042 100 oz, supported by the timing of some sales rolling over from the previous quarter into October, together with higher volumes of minor PGMs sold.

The average realised fourth-quarter basket price of R38 723 per PGM ounce, or $2 269 per PGM ounce, was the highest since the fourth quarter of 2022 and up 41% and 50% year-on-year respectively.

All PGMs, except iridium, contributed substantial year-on-year gains, with platinum 78% higher and rhodium 70% higher.

The broad-based price rally that began in May gained further momentum during the final quarter on rising investor interest in physical assets, the launch of new futures contracts in China and ongoing market tightness. The average realised full-year rand PGM basket price of R32 611 per PGM ounce increased by 22%, while the dollar PGM basket price of $1 852 per PGM ounce increased by 26% year-on-year.

Valterra smelts and refines PGMs and associated co-products from its South African and Zimbabwean operations and has integrated value chain bolstered by marketing hubs in London, Singapore and Shanghai.

As reported by Mining Weekly in December, Valterra's market capitalisation has sky-rocketed to north of R300-billion and the company is continuing to look for new markets into which it can invest and which can utilise its products. The utilisation of PGMs in cleaner mobility is being expanded by fuel cell electric vehicle development, battery electric vehicle advances and more recently, in technological applications such as data storage and electronic chips.

Fourth-quarter production delivered the strongest quarterly performance of 2025, increasing by 10% quarter-on-quarter owing to Amandelbult's return to steady-state operations and improved output at Mogalakwena.

Mogalakwena's PGM production decreased by 8% to 260 800 oz, despite higher tonnes milled, owing to a lower built-up head grade compared with the fourth quarter of 2024.

On a quarter-on-quarter basis, own-mined production increased by 10%, reflecting Amandelbult's return to steady-state production for the first full quarter following the February 2025 flooding. Full-year own-mined PGM production exceeded guidance at 2 060 300 oz amid total full-year PGM production hitting the 3 200 600-oz mark.

Expressed as five element ...

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

Despite mining being essential for the survival of the global economy, the mining industry's critical minerals pipeline remains thin and its greenfield exploration budgets flat.

Pressure on mines to operate in a lower-margin environment remains, with industry conditions suggesting the likelihood of further consolidation among mining majors.

While the need for generative exploration is acknowledged as being essential, value over volume is the mantra.

Where money is available, gold and silver feature first and second on the list.

Even though new discovery is mission-critical, inorganic growth remains the focus, at a time when supply chain reorganisation is accompanying political competition between major powers.

These are among the many points highlighted by Seequent Segment director mining Dr Janina Elliott in an article to Mining Weekly on three mining industry trends that need watching.

While the world is set on the path to electrification and digital transformation, market behaviour does not yet indicate the onset of a new super cycle focused on energy transition.

Mining being treated as a strategic priority for autonomy, fast-tracking policy shifts, incentives, and public-private partnerships is creating opportunity.

To satisfy stakeholders, diversified mining companies are needing fiscal and operational optimisation with a focus on existing sites against the background of investors wanting clear returns.

For the foreseeable future, the current holding patterns on global investment shaped by geopolitics are likely to remain in 2026 and despite a hesitantly positive outlook, global activity does not yet bear the semblance of a super cycle.

Mining needs to embrace modern technology with a greater sense of urgency and needed when choosing technology are agility and openness. Agility refers to flexible workflows and pointed out is that a modern drilling campaign takes advantage of a digital supply chain from sensor-enabled rigs, to automated core sheds, to digitally connected laboratories that create geological insight while the drills are turning. Where openness matters is with cloud-based ecosystems that enable data to flow freely across multi-disciplinary streams.

Upskilling is now unequivocally critical within an environment where technology aids a modern geoscientist in the innovation of more efficient workflows. Success in 2026 will depend on disciplined growth, responsible innovation, and a renewed focus on people and sustainability, Elliott outlines in the article to Mining Weekly.