President Advocates for Critical Minerals as Key Driver of Economic Growth and Sustainability at UNGA 79

The President also showcased advancements made by SASOL, South Africa’s leading petrochemical company, in the realm of green hydrogen technologies.

In a significant address at the African Minerals Forum held during the 79th United Nations General Assembly (UNGA 79) in New York, President Cyril Ramaphosa underscored the vital role of the critical minerals sector in fostering global economic growth and sustainability. He emphasized that South Africa is poised to enhance its business environment and attract essential investments by leveraging key sectors such as mining, energy, and manufacturing.

Reflecting on the recent establishment of a Government of National Unity in South Africa, following national elections four months prior, President Ramaphosa highlighted the collaborative efforts of 10 political parties united by a common agenda aimed at economic growth and sustainable development.

A key focus of his speech was South Africa's commitment to reducing greenhouse gas emissions and tackling climate change through its Just Energy Transition Plan, which facilitates a shift from coal to renewable energy sources while ensuring equitable economic opportunities for affected communities.

President Ramaphosa stated, “South Africa's and Africa’s critical minerals sector has a crucial role to play in this regard,” recognizing the need for collaboration with other countries to unlock the potential of the critical minerals sector. He specifically pointed to the United States’ expertise in advanced mining technologies and sustainability practices, expressing a desire to strengthen partnerships with US companies and institutions to enhance supply chain efficiencies and attract investment.

The President voiced strong support for the United Nations Secretary-General’s position on Critical Energy Transition Minerals, which emphasizes the importance of beneficiation, local value addition, and economic diversification. He asserted, “The minerals that lie beneath the soil of Africa are powering the green energy revolution,” noting that 30% of the world’s proven critical mineral reserves are found in Sub-Saharan Africa.

Highlighting South Africa’s substantial reserves of platinum group metals, manganese, vanadium, and chromium, President Ramaphosa stressed the need to move away from colonial-era exploitation that primarily focuses on raw mineral exports. He advocated for local beneficiation and processing, which he argued could boost the continent’s GDP by 12% or more by 2050. Additionally, he cited estimates that suggest Africa could generate USD 24 billion annually and create 2.3 million jobs through investments in mining beneficiation.

The President also showcased advancements made by SASOL, South Africa’s leading petrochemical company, in the realm of green hydrogen technologies. He noted the potential for the country to capitalize on its experience in automotive production, particularly as the global industry shifts towards Electric Vehicles (EVs) and New Energy Vehicles (NEVs), attracting leading manufacturers to produce greener vehicles in South Africa.

Despite progress in improving the beneficiation of South Africa's mineral exports, President Ramaphosa acknowledged that there is still much work to be done. He committed to establishing a supportive policy framework for the critical minerals sector that emphasizes streamlining regulations, fostering innovation, and enhancing transport and logistics infrastructure to incentivize investment.

Outlining a five-point policy approach, the President called for:

Simplification of regulations

Support for research and development in mining technologies

Investment in workforce skills

Improvement of logistics infrastructure

Incentivization of domestic and international investment

He reiterated the importance of inclusivity, calling for decent work opportunities and protections against exploitative practices such as child and forced labor. The President underscored the necessity of environmental safeguards to ensure sustainable extraction practices and emphasized inter-generational equity, recognizing that critical minerals are essential for addressing global challenges like climate change, energy insecurity, and food security.

In conclusion, President Ramaphosa called upon US companies and investors to join South Africa on its journey towards sustainable development, stating, “By leveraging our respective strengths and pursuing strategic collaborations, we stand ready to meet the demands of the global market.”