Mantashe announces exploration fund for emerging miners

Mantashe made the announcement at an investment seminar on the sidelines of the African Mining Indaba in Cape Town on Tuesday.

Mantashe signed a memorandum of agreement with the Industrial Development Corporation (IDC)

He emphasised the need to support young miners to allow transformation in mining.

"Having passed all the regulatory hurdles and approvals for the establishment of this fund, we are ready to launch the Junior Mining Exploration Fund today through the signing of the memorandum of agreement.

"Through this fund, we seek to financially assist qualifying enterprises in the mining industry to conduct prospecting work, increase the junior miners’ access to mine ore bodies, and promote economic inclusion that will support equitable economic growth," said Mantashe.

IDC COO Joanne Bate said the qualifying criteria requires applicants to comply with the South African mining regulatory requirements.

"We can't over-state the significance of this industry to our economy. Mining is not only the backbone of our economy but is the largest employing sector in this country.

"Our exposure has informed us of the many challenges facing emerging black-owned mining companies that are looking for a foothold into this sector. 

"Exploration costs can be onerous on small mining firms and therefore, it is our hope that the fund will help alleviate the challenges facing junior mining companies," added Bate.

The fund will be administered and managed by the IDC.

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