Mantashe pushes for processing quotas to end raw mineral exports
As the world races toward green industrialisation, South Africa is taking a firm stand to start moving from exporting raw minerals without value addition.
Minerals and Petroleum Minister Gwede Mantashe has called for the introduction of mandatory local processing quotas, saying South Africa must stop exporting its mineral wealth in raw form, along with the jobs and profits that come with it.
Speaking at the G20 Critical Minerals Stakeholder Engagement in Johannesburg on Tuesday, Mantashe said beneficiation must become non-negotiable.
"We must set quotas and say X percentage of what is mined must be processed in South Africa. That will ensure that we add value here,” Mantashe told delegates.
South Africa is one of the world’s most resource-rich nations, sitting atop vast reserves of platinum group metals, lithium, manganese, rare earths, and coal, all essential inputs for clean energy technologies like batteries, solar panels, and electric vehicles.
Yet, most of these minerals are exported in raw form, with limited industrial benefits trickling back into the country.
This, Mantashe argued, continues a colonial-era pattern of extraction that undermines development.
"Africa is rich in minerals, but it is a poor continent. That is the irony we must address,” he said.
"We must change the pit-to-port formula of mining because it doesn’t add value for the hosting countries and communities.”
The minister’s remarks come as South Africa leads the G20 in 2025, using its presidency to amplify African voices and economic priorities.
The push for local processing is aligned with the G20’s theme of Solidarity, Equality, and Sustainability, as well as global efforts to diversify supply chains and promote just transitions.
Mantashe also stressed that trade must occur on fair and equitable terms.
"We should never be bullied for our own resources. If people want to trade with us, it must be in terms that are mutually beneficial to both us and them.”
With global demand for critical minerals skyrocketing, South Africa is positioning itself not just as a supplier,but as a builder of value-added, job-creating mineral economies.
The minister’s call for quotas is expected to influence the broader G20 Summit agenda later this year.
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