Spending on mineral exploration in South Africa has dropped for the seventh year in a row, highlighting ongoing difficulties in efforts to revive the country’s vital mining sector.
Despite remaining Africa’s largest exporter of mineral products, mining companies operating in South Africa are allocating smaller budgets to exploration activities that identify and develop future mining projects. The trend raises concerns about the long-term sustainability of the industry, according to a report by Bloomberg.
As investment declines, other African mining destinations such as Zambia and the Democratic Republic of the Congo are increasingly attracting exploration funding that once flowed into South Africa.
Data released by Statistics South Africa shows exploration spending fell by 5.3% in 2025 to 738 million rand (about $43.9 million), based on calculations using 2015 constant prices.
The figures also reveal a sharp long-term decline. Over the past three decades, investment in mineral exploration in the country has dropped by more than 85%, reflecting persistent structural challenges within the sector.
Industry groups have described the downward trend as alarming, warning that weak activity among junior mining and exploration firms is undermining the development of future mining projects. Major companies in the sector include Valterra Platinum Ltd., Harmony Gold Mining Co., and Exxaro Resources Ltd..
Researchers from Economic Research Southern Africa have suggested several measures that could revive exploration activity. These include introducing tax incentives, establishing a transparent public database of available mining rights, and increasing government investment in geological mapping.
The Department of Mineral and Petroleum Resources has already announced a strategy to reverse the decline. The plan aims to increase South Africa’s share of global exploration spending to 5%, compared with its current level of less than 1%.
Despite the downturn in exploration, the country remains a major global supplier of commodities such as coal, gold, iron ore, manganese, chrome and platinum-group metals. Reflecting the sector’s continued economic importance, total mineral sales in South Africa rose by 7.3% last year to reach 861 billion rand.
