CAPE TOWN (miningweekly.com) – Anglo American drew applause on day two of the Investing in African Mining Indaba for the R600-million the diversified mining major has provided for exploration in South Africa

Established with an initial R400-million, the Junior Mining Exploration Fund (JMEF) is a joint mining exploration fund managed by South Africa’s State-owned Industrial Development Corporation (IDC) and the Department of Mineral and Petroleum Resources (DMPR) with the Council for Geoscience (CGS) providing oversight and technical support in evaluation of applications.

Among other objectives, the fund seeks to empower South African junior mining businesses with funding to enable them to conduct exploration and prospecting work – this is part of government’s efforts to promote economic inclusion and support equitable economic growth. As part of the terms for funding, successful applicants receive non-repayable, convertible grants. Funds disbursed to recipients are convertible to equity or profit share upon successful discovery of an orebody.

Allocated R160-million in the first window of applications, which opened in June 2024, eight junior mining entities out of 117 applicants were selected for funding to advance geological mapping and other exploration activities. The scope of the first window was narrowed to include copper, nickel, lithium, graphite and rare earths. Following on the success of the first window, mining giant Anglo has formally committed R600-million to the JMEF to enhance its objectives.

Speaking during an exploration investment event hosted by the DMPR at the ongoing Mining Indaba, IDC CEO Mmakgoshi Lekhethe lauded Anglo for its decision to support the fund stating that private sector-led partnerships were critical to transforming and unlocking the potential of South Africa’s mining sector.

“As part of our mandate to support equitable economic growth, transformation and promote economic inclusion, the IDC and the DMPR each contributed R200-million to establish the JMEF.

“For us, Anglo’s financial commitment to the fund validates our role in de-risking critical sectors of our economy,” said Lekhethe at the event covered by Mining Weekly.

With an exposure of more than R42-billion, mining ranks as one of the most critical sectors in the IDC portfolio.

Director-general Jacob Mbele also praised Anglo for its commitment to the JMEF stating that the mining conglomerate’s support demonstrated the standing commitment to empowering junior miners and fuelling exploration in the minerals sector. “Anglo’s partnership is a clarion call to the private sector to similarly support the JMEF,” said Mbele, adding that he was confident that more private sector-led companies would emulate Anglo’s gesture.

In addition to supporting junior miners with prospecting work, Mbele added that this fund formed part of South Africa’s mineral exploration strategy whose objective among others was to attract exploration investment, reignite mineral development and accelerate new mineral discoveries while encouraging optimal utilisation of the country’s mineral resources.

“Working alongside the fund's existing partners – the DMPR, IDC and CGS – our shared ambition is to evolve this initiative into its next natural phase enabling not only Anglo American but many others to participate in and benefit from junior exploration across the country – including possibilities of being equity partners with juniors to discover South Africa’s next world-class mines,” said Anglo American CEO Duncan Wanblad, who was strongly applauded by attendees.

Following the success of the first window, the IDC and DMPR opened the second window whose scope was broadened to include applicants seeking funding in other mining sectors. The revised terms of reference in the new window state that applicants must be junior miners with a valid prospecting or mining right, and applicant’s maximum requirements should not exceed R50-million

Other terms of reference require applicants to use funding for activities including early-stage discovery exploration.