How critical minerals can anchor South Africa’s Just Energy Transition

South Africa’s mineral wealth must do more than power exports – it must drive industrial growth, job creation, and energy equity. Muzi Kubeka and Kabelo Dlothi argue it’s time to move beyond extraction and build a value-added ecosystem that secures the country’s place in the green global economy.

South Africa is sitting on a goldmine of critical minerals — copper, manganese, platinum group metals, and rare earths — yet exporting them raw sells the country short. To unlock real value, we must prioritise ourselves: industrialise locally, build domestic supply chains, and use our mineral wealth to create jobs, strengthen energy security, and grow our own economy. It’s time to stop fuelling other economies and start transforming our own.

Critical minerals are at the heart of the new global energy order. They power everything from wind turbines and solar panels to electric vehicles and industrial-scale batteries. And demand is soaring. Countries are scrambling to secure critical mineral supplies – driven, as recent events show, by geopolitics. US President Donald Trump has struck a deal with Ukraine, floated turning Canada into the 51st state, and revived efforts to annex Greenland. Meanwhile, the US and EU have placed strategic mineral partnerships high on the agenda. China still dominates processing. The race is not just economic – it’s also geopolitical and environmental.

South Africa cannot afford to be a spectator. If we want to be more than a pit stop on the global supply chain, we must use our mineral advantage to anchor a broader, value-driven energy and industrial strategy. This means building smelters and refineries, developing skills pipelines, and investing in reliable power infrastructure that supports local processing. It also means enforcing beneficiation requirements and incentivising the private sector to move beyond shipping unprocessed ore offshore. South Africa is the most industrialised country in the African continent, has the most diverse and deepest capital markets and the basis to build and develop the skills sets required to drive this transition. The mining industry in South Africa employs approximately 480 000 representing almost 5% of the country’s formal employment. Likewise, the country boasts in excess of 20 smelters for various metals, including aluminium, copper and platinum group metals (PGM), including Hillside smelter in Richards Bay, the largest aluminium smelter in the Southern Hemisphere. In addition to critical minerals South Africa also exports skilled professionals and expertise given the mining industry’s long history of developing highly skilled professionals, artisans and technicians. The development of a broader, value-driven energy and industrial strategy can assist in reversing this trend.

There are already signs of change. Large mining houses listed in London, Toronto and New York are under mounting pressure to reduce emissions across their operations and supply chains. Many are responding by investing in captive renewable energy generation near mines, especially in remote areas where grid access is unreliable or non-existent. These integrated energy-mining projects reduce environmental impact while improving energy security. Done right, they create jobs, strengthen resilience, and attract sustainable finance. In this respect, examples include Anglo American’s 100MW solar pv plant at its Mogalakwena mine, its 125 MW solar pv plant at its Amandebult complex, Glencore’s , power purchase agreement with Pele Green Energy (“PGE”) to power the Glencore-Merafe ferrochrome operations from PGE’s sonvanger solar pv plant and Northam Platinum’s 180MW solar pv plant to power its Zondereinde mine.

But scaling this model will require addressing structural problems. First, there is the infrastructure deficit. Most of South Africa’s critical minerals lie in remote or underdeveloped regions. Without transmission lines, roads and rail, these minerals cannot reach processing facilities or ports. The development of regional power pools and cross-border transmission infrastructure is crucial, as are public-private partnerships to finance them.

Second, reliable energy is non-negotiable. Mining and processing require constant power supply, but renewable sources like solar and wind are intermittent. Storage solutions are costly and still evolving. Banks remain cautious, especially when assessing costly battery-backed projects with long-term revenue risks. Yet these same technologies offer the potential to stabilise supply and unlock off-grid potential. What’s needed is blended finance, de-risking instruments, and regulatory clarity to support their adoption.

Third, beneficiation legislation must go hand-in-hand with investor confidence. If we want global players to set up processing hubs locally, we must guarantee policy stability, fast-track permitting, and provide incentives for innovation. South Africa’s experience with localisation in renewable energy shows what is possible when regulation, funding, and capacity development align.

There is also an opportunity to coordinate across the SADC region. Countries like Zambia and the DRC are mineral-rich but infrastructure-poor. Regional corridors such as the Lobito (linking Angola’s port to the DRC’s Katanga province and Zambia’s Copperbelt) and the North-South (connecting the Great Lakes to southern Africa) provide a foundation for integrated development. By pooling risk, sharing infrastructure, and aligning standards, member states can unlock regional value chains and scale up industrial benefits across borders.

At the center of all this must be a commitment to justice. The Just Energy Transition is not just about moving from fossil fuels to renewables. It’s about ensuring that communities affected by the shift are not left behind. That means ensuring the jobs created by new industries are meaningful, decent, local and long-term. It means ensuring that mining does not displace communities without compensation. And it means including workers, youth and affected communities in decision-making.

The global energy transition is a once-in-a-century reordering of power. South Africa has the resources to lead, but leadership will require more than rhetoric. We need clear policy, bold investment, and coordinated implementation. If we get it right, our critical minerals won’t just leave our shores. They’ll anchor a domestic industrial revival that powers South Africa into a greener, more inclusive and just future.