Further investment needed to lift sector

FRED ARENDSE Junior miners are essential in identifying new ore bodies that may later develop into large-scale mining operations
Because junior mining companies are the principal drivers of mineral exploration in South Africa, junior mining lobby association the Junior Mining Council (JMC) is calling for increased investment into the local emerging mining sector.
To uplift junior miners in South Africa, JMC founder and president Fred Arendse points to the development finance institution Industrial Development Corporation’s (IDC's) establishment of the Junior Mining Exploration Fund (JMEF), which provides junior miners with access to grant funding for prospecting and early-stage exploration.
“Junior miners are . . . essential in identifying new ore bodies that may later develop into large-scale mining operations . . . Greater investment would help unlock untapped mineral reserves, create employment opportunities, generate tax revenue and establish a pipeline of future mining projects to sustain the industry over the long term,” he says.
In particular, the JMC encourages exploration, development and early-stage production mining projects that focus on critical minerals and the energy transition, including copper, lithium, manganese and platinum group metals, which are essential for the manufacture of electric vehicle batteries, hydrogen fuel cells and renewable energy systems.
There are some noteworthy junior miner projects in the pipeline, including copper-zinc miner Orion Minerals’ Prieska Copper Zinc Mine (PCZM) project and the Okiep Copper Project, highlights Arendse. The Okiep Copper Project has already secured pre-development funding through an agreement with the IDC.
The JMC also highlights the exploration pipeline of greenfield and brownfield projects supported by initiatives such as the JMEF and government’s critical minerals strategy, he says, adding that JMC’s role includes advocacy and policy engagement, linking junior miners with investors and funding opportunities, and supporting the long-term development of emerging mining projects.
Standing to the benefit of emerging miners, Arendse says there are various technological and cost-efficient innovations that junior mining companies are adopting, and can implement, to improve competitiveness and sustainability. These include AI technologies that are used for geological modelling and exploration targeting, remote sensing, satellite-generated data, digital twin models, predictive analytics tools and maintenance tools.
In light of cost-efficient operational solutions, he also points out that junior mining companies are adopting modular low-capital mining methods, contract mining models and faster project development cycles.
Hindrances, Junior Indaba Foci
The junior mining sphere in South Africa holds numerous obstacles, some of which are more pronounced for financially lean emerging miners, such as the threat of illegal miners.
“Illegal mining deters investors by increasing the perceived risk of projects and undermines regulatory compliance, as well as environmental, social and governance standards.
“The JMC maintains that stronger law enforcement measures, together with the formalisation of small-scale mining, are essential to addressing this issue,” says Arendse.
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