May 2025 marks a pivotal moment for South Africa’s mining sector, with two significant developments. First, the Cabinet has officially approved the country’s long-anticipated Critical Minerals Strategy, a roadmap to secure South Africa’s role in the international critical minerals supply chain and support the green energy transition. Second, the Department of Mineral and Petroleum Resources has published the Draft Mineral Resources Development Bill, 2025, proposing significant amendments to the Mineral and Petroleum Resources Development Act, 2002.

These developments are poised to impact mining operations, investor sentiment, and regulatory compliance. Below, we unpack the key elements of the Critical Minerals Strategy and the proposed legislative changes introduced by the Draft Mineral Resources Development Bill, 2025.

Below, we highlight things you need to know about the Critical Minerals Strategy and the Draft Mineral Resources Development Bill, 2025.

Cabinet’s Approval of Critical Minerals Strategy

In 2023, South Africa resolved to develop a clear roadmap to maximise the exploitation of minerals critical to its economy, which fostered regional cooperation and promoted economic growth. Although various countries have used the term “critical minerals,” there has been no universal consensus on the definition of critical minerals.

In drafting the Critical Minerals Strategy, there are 8 indicators used to indicate criticality for South Africa, which include:

  • Export potential
  • Employment indicator
  • Supply risk
  • Export sales
  • Domestic sales
  • Substitutability indicators

The Critical Minerals and Metals Strategy is aimed at:

  • Securing South Africa’s role in the global critical minerals supply chain
  • Supporting South Africa’s transition to a low-carbon economy by providing essential inputs towards clean energy technologies
  • Channelling industrial development and economic transformation through value addition and downstream beneficiation

The Critical Minerals Strategy identifies the following key minerals:

  • High-criticality: Platinum, Manganese, Iron ore, coal, and chrome ore
  • Moderate-to-high criticality: Gold, Vanadium, Palladium, Rhodium, and rare earth elements
  • Moderate criticality: Copper, cobalt, lithium, graphite, nickel, titanium, uranium, phosphate, fluorspar, zirconium, and aluminium

The Critical Minerals Strategy consists of the following Six Pillars:

  • Geoscience Mapping and Exploration: Prioritise resource identification and exploration
  • Value Addition and Localisation: Boost domestic beneficiation in order to reduce having to rely on imports
  • Research and Development Investment and Skills Development: Foster innovation and workforce training
  • Infrastructure and Energy Security: Ensure reliable infrastructure for mining and processing
  • Financial Instruments for Beneficiation: Create fiscal frameworks for attracting investment
  • Policy and Regulatory Harmonisation: Streamline laws to improve competitiveness

Publication of the Mineral Resources Development Bill of 2025

The Mineral Resources Development Bill of 2025 seeks to bring amendments to the Mineral and Petroleum Resources Development Act, 2002 (MPRDA) to:

  • Align the MPRDA with the emerging international standards;
  • Simplify the regulatory processes for proper alignment with the National Environmental Management Act, 1998 and the National Water Act, 1998.
  • Simplify the licensing processes to reduce delays for mining rights, permits,
  • provide clarity on the regulatory approvals for changes of control;
  • ensure regulation of historic tailings facilities;
  • Promote sustainable mining practices and share benefits with communities.
  • Measures to fight illegal mining within the mining and minerals sector; and
  • Introduce a licensing regime for artisanal and small-scale mining operations

Mining Law with Sitef & Co.

The Critical Minerals Strategy and the draft Bill intend to boost investor confidence, channel industrialisation, and prioritise hydrogen and renewables. The Mineral Resources Development Bill of 2025 is open for public comments until 13 August 2025.

Please email us at info@sitef.co.za for a substantive breakdown of the provisions and implications of the proposed amendments brought by the Draft Mineral Resources Development Bill of 2025.

Sitef & Co is also assisting interested and affected parties in submitting comments on the Draft Mineral Resources Development Bill of 2025. If you would like to be assisted, please email us at info@sitef.co.za.