More opportunities are likely to emerge in the manganese value chain in future, following anticipated growth in demand for manganese ore and its products including ferromanganese. “This is being driven by traditional steel production and emerging green energy technologies, such as electric vehicle batteries,” says diversified mining group Menar MD Vuslat Bayoglu.

“According to data from Fortune Business Insights, the global ferromanganese market size is projected to grow from $82.16-billion in 2024 to $112.34-billion by 2032. Given these promising prospects, South Africa is well positioned to capitalise on this vibrant sector owing to the country’s vast manganese reserves.”

Over 70% of the world’s identified manganese resources are in South Africa, primarily concentrated in the Northern Cape province, Bayoglu tells Mining Weekly.

“In addition, coal remains the backbone of South Africa’s energy mix and continues to play a key role in power generation, iron and steel production, cement manufacturing and chemical production,” he adds.

Menar expects the demand for thermal coal to remain strong, especially in emerging Asian economies, such as China and India, while a decline in demand for the commodity could persist in Europe and the US.

Nonetheless, one of Menar’s top priorities is to continue diversifying its portfolio of products to lower the risk of being reliant on a single commodity. The company’s dealing with Samancor to acquire the Metalloys smelter – which Menar plans to rename Khwelamet – is significant in this regard.

The company is also exploring other opportunities beyond its traditional focus areas such as in gold, with a drilling campaign in Kyrgyzstan, and mining a nickel/cobalt asset in Turkey.

Meanwhile, Menar is continuing with its established coal, anthracite and manganese operations in South Africa.

Sector Performance, Investment Attraction

Despite South Africa’s mining sector experiencing some months of positive growth in 2024, Bayoglu says this forward momentum could not be sustained throughout the year, owing to several challenges impacting the sector, such as loadshedding, rail and port bottlenecks, and general inefficiency.

“With Eskom having managed to stop loadshedding for a sustained period, and Transnet gradually resolving its issues, the mining sector can now focus on seeking growth opportunities.

“With its vast mineral reserves and century-long mineral track record, South Africa is the perfect candidate for rapid growth, provided the commitment to improve the operational climate for businesses is fulfilled.

“Other factors that make South Africa a desirable mining investment destination include the availability of skills, existing infrastructure, research capacity and sophisticated legal systems,” Bayoglu adds.

Further, he notes that modern technologies play an important role in enhancing digital transformation in the mining sector and can collect real-time data on equipment performance, environmental conditions and worker safety.

As for adoption, mines are making optimal use of technologies such as mobile 5G networks, thereby making it possible for live monitoring of staff and equipment, which Bayoglu says is crucial for efficiency and safety.

“Technologies make it possible for the mining sector to become smarter, more sustainable and efficient,” he adds.

Meanwhile, many players in the domestic mining sector eagerly await the launch of Project Indwe – a cadastral system aimed at making the application of mining rights transparent, accessible and efficient.

Such a tool, says Bayoglu, will likely increase South Africa’s chances of attracting investors and encourage exploration, adding that the mining cadastral system is meant to alleviate administrative challenges, creating a more conducive operational environment for mining.