Africa’s first Black billionaire Patrice Motsepe says partnerships boost South Africa’s mining sector

South Africa’s mining industry is regaining strength on the back of closer cooperation between government and private operators, according to billionaire businessman Patrice Motsepe, who says structured partnerships are beginning to address long-standing bottlenecks that have weighed on output and investor confidence for more than a decade.

Motsepe, the founder and chairman of African Rainbow Minerals (ARM) and Africa’s first Black billionaire after joining the Forbes list in 2008, pointed to a substantial increase in mining production as evidence of a sector finding firmer footing after years of disruption tied to policy uncertainty, logistics constraints, power outages, and infrastructure deterioration.

Motsepe backs mining policy coordination

Speaking on the sidelines of a conference in Nairobi, Kenya, Motsepe said collaboration between public institutions and business groups is now central to improving South Africa’s competitiveness in global mining markets.

He referenced efforts involving President Cyril Ramaphosa’s administration and private sector coalitions such as Business for South Africa (B4SA), which have focused on stabilizing transport networks and strengthening energy systems that have struggled under pressure.

“They’ve done very well over the last few years in ensuring South Africa becomes a destination for investments,” Motsepe said. “Part of what should take place in those partnerships is for the CEOs of the mining industry to keep telling the government what are the changes, the improvements and the areas that will ensure that South Africa is a globally competitive destination.”

The improvement in operational conditions, including the end of rotational power cuts and incremental gains in freight and logistics performance, has coincided with stronger commodity pricing. That combination has helped lift sentiment in South Africa’s mining equities. Johannesburg’s industrial metals and mining index has risen 30 percent so far this year, compared with a 2.4 percent gain in the broader FTSE/JSE All Share Index.

South African mining output rebounds

South Africa remains a leading global producer of platinum group metals, gold, chrome and manganese, and Motsepe said the recent gains underscore how quickly output can respond when infrastructure constraints are eased. Still, he noted that structural challenges remain embedded in the sector.

Official data continues to show a sustained pullback in exploration activity. Mineral exploration spending fell 5.3 percent to R738 million ($44.8 million) in 2025, measured in 2015 constant prices, according to government statistics published in March. Over a longer horizon, exploration investment has declined by more than 85 percent over the past three decades, reflecting reduced appetite for early-stage mining risk despite policy efforts aimed at reversing the trend.

Motsepe, who built his wealth in gold mining during the 1990s and 2000s and is now South Africa’s wealthiest Black individual with a $3.9 billion fortune according to Forbes, said his company plans to commit several billion dollars to mining investments in the country, though he did not provide a timeline for deployment.

His flagship company, African Rainbow Minerals (ARM), operates across coal, iron ore and platinum-group metals, and holds a 10 percent stake in Harmony Gold, one of South Africa’s largest gold producers. The group’s diversified exposure has benefited from stronger commodity pricing and tighter capital discipline across its portfolio.

ARM profit more than doubles

For the six months ended December 31, 2025, ARM reported a profit of R3.04 billion ($183.6 million), more than double the R1.45 billion ($87.38 million) recorded a year earlier. Revenue rose 31.63 percent to R8.4 billion ($507.3 million), reflecting stronger pricing conditions and improved operational performance across key assets.

Headline earnings increased 10 percent to R1.67 billion ($100.78 million), or R8.66 ($0.52) per share, compared with R1.52 billion ($91.73 million), or R7.75 ($0.46) per share, in the prior period. ARM also reported a stronger balance sheet position, closing the period with net cash of R8.46 billion ($510.28 million), up from R6.61 billion ($398.69 million) six months earlier, giving it greater flexibility as it considers future investments. The company declared an interim dividend of R5 ($0.3) per share.

In April 2026, ARM signed a multi-year nickel offtake agreement with Boliden, a move aimed at supporting the restart of its Nkomati Nickel Mine. The agreement, signed on April 24, 2026, provides a European export route for future production and links the asset to demand for nickel used in electric vehicles, batteries and renewable energy systems, sectors that continue to drive global demand for responsibly sourced metals.