- Budget prioritises upstream petroleum development, mine rehabilitation and critical minerals exploration.
- Government moves to strengthen energy security amid global geopolitical instability and fuel supply concerns.
- Mining sector contributed R477 bn to GDP in 2025 while royalties rose 11% to R11.8 bn.
Minister of Mineral and Petroleum Resources Gwede Mantashe has tabled the department’s R2.86 bn budget in Parliament, outlining an aggressive strategy to strengthen South Africa’s mining and petroleum sectors amid global economic uncertainty and rising geopolitical tensions.
Mantashe said the budget reflects government’s response to growing instability in global energy markets caused by conflict in the Middle East and a sluggish international economy.
“We are tabling this Budget Vote during a difficult period in the global economy. A time when conflict rages in the Middle East with its tremors felt far beyond its frontlines, destabilising global energy supply chains and casting a long shadow over our own economic recovery,” Mantashe said.
“In this era, where energy security is intrinsically linked to national stability, we cannot stand on the sidelines and be passive observers.”
The department has allocated R70.46 million to the South African Diamond and Precious Metals Regulator, R94.98 million to the Petroleum Agency South Africa, R666.9 million to the Council for Geoscience and R328.7 million to Mintek. A further R4.89 million has been allocated to the Mine Health and Safety Council.
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Project specific allocations include R140.87 million for the rehabilitation of derelict and ownerless mines, R48.1 million for the implementation of the shale gas project, R33.83 million for the Mine Water Ingress Project and R31.12 million for the Artisanal and Small Scale Mining Project. Government has also earmarked R23.48 million for the Mine Rehabilitation Research Project.
Central to the budget is an accelerated push to develop South Africa’s upstream petroleum industry and expand domestic refining capacity. Mantashe defended the continued development of fossil fuel infrastructure despite criticism from environmental lobby groups.
“The fact remains that petroleum security is not a theoretical debate, but an economic necessity and a national imperative,” he said.
Mantashe called for the accelerated processing of the South African National Petroleum Company Bill to enable the operationalisation of the South African National Petroleum Company as a strategic state owned entity under the Upstream Petroleum Resources Development Act.
The minister also sought to reassure the public on fuel availability.
“While global fuel supply challenges persist, I would like to assure the people of South Africa that we have sufficient fuel supply to meet demand, and that our fuel supply remains stable,” he said.
On mining, Mantashe said the sector remains a cornerstone of the economy despite ongoing operational pressures linked to electricity costs and global market conditions.
South Africa’s mining Gross Value Add reached R477 bn in 2025, contributing approximately 6.3% to GDP. Mining royalties increased 11% year on year to R11.8 bn from R10.6 bn in 2024, supported by stronger iron ore and manganese exports as well as improved commodity prices.
However, Mantashe acknowledged that rising electricity prices continue to place severe pressure on deep level gold and platinum group metal operations.
The minister also highlighted progress on the country’s Critical Minerals and Metals Strategy, saying government has shifted from policy planning to implementation.
“We have moved decisively from blueprint to battlefield, aggressively actioning the framework to secure a seat at the head of the global critical minerals dialogue and transactions,” he said.
As part of the strategy, the Council for Geoscience has expanded national onshore mapping coverage from below 5% in 2019 to 20% in the 2025/26 financial year through its Integrated and Multi-Disciplinary Geoscience Mapping programme.
Mantashe said the newly launched Virtual Core Library, unveiled during this year’s Mining Indaba, would support investment by improving access to high quality geoscientific data.
Government’s R400 million Junior Mining Exploration Fund has already financed 13 projects, with exploration activity under way in areas including Giyani and Bothaville.
Author: Bryan Groenendaal
