The list of mineral wealth in South Africa’s Northern Cape province is so extensive that the area has great potential to become a leading global supply source for many critical minerals.

Already engaged are large-scale and junior mining operations that include Kumba and Kolomela (iron ore), Kgalagadi Manganese (a big manganese miner), Okiep and Prieska (copper), the coast (diamonds and inland alluvial fields) and Vedanta Zinc International in Aggeneys (zinc and lead), which is next to the province’s first designated special economic zone known as Namakwa SEZ.

‘Regardless of these activities, a significant portion of the Northern Cape remains underexplored, particularly at depth and in greenfield areas,’ says Shawn Modise, acting CEO of the Northern Cape Economic Development Agency (NCEDA), which promotes the province’s investment potential.

‘Geological surveys indicate substantial upside potential for copper, manganese extensions, zinc, vanadium, rare earth elements and battery-related minerals. The Northern Cape is, quite simply, one of South Africa’s highest potential exploration frontiers due to its geology and low historical exploration density relative to endowment.’

The region has two more drawcards – it is globally recognised for its superior solar and wind resources and is emerging as a strategic green hydrogen and green ammonia production hub. ‘Renewable energy provides low-carbon power, green molecules decarbonise energy-intensive processes, and mining supplies the critical raw materials required for both technologies. Systems transition research identifies this interdependence as essential for sustainable industrial development,’ says Modise.

‘Together, the glue that binds mining, renewable energy and green molecules is a shared objective of cost competitiveness, energy security and emissions reduction.’

The latter is an issue that affects all mines. It’s the major reason the European Union introduced the EU Carbon Border Adjustment Mechanism (CBAM), a policy that prevents carbon leakage into Europe through the addition of a carbon price or tax on certain carbon-intensive imported goods, including hydrogen. The period of transitional reporting, introduced in 2023, has now morphed into full functionality compliance, including financial obligations.

The NCEDA, along with provincial government, is fully in support of the CBAM and is driving industry awareness, data readiness and compliance pathways for operators.

‘Carbon-intensive goods impacted include iron ore, manganese, steel inputs and processed metals,’ says Modise. ‘Embedded emissions accounting follows internationally recognised lifecycle assessment methodologies. For example, hydrogen emissions are calculated based on electricity source, electrolyser efficiency and process energy intensity, as established in peer-reviewed energy systems research.’

This complements the message the NCEDA is delivering to interested investors to establish their allied businesses in the province. ‘Our role as a provincial implementation agency is to drive investment attraction, trade facilitation, industrial development and enterprise development and support. We do this by operationalising provincial economic policy through project development, infrastructure enablement, investor facilitation and strategic sector support, with mining, energy and industrialisation as core pillars. Our mandate is grounded in development economics and a regional growth theory, which identifies co-ordinated infrastructure and investment facilitation as key drivers of regional competitiveness.’

It’s a facilitative and catalytic role rather than an operational one, however. It includes the NCEDA developing and supporting industrial parks and special economic infrastructure, aligning bulk infrastructure planning with mining demand, attracting downstream beneficiation investors and co-ordinating skills development initiatives with TVET colleges and universities.

‘This is a comprehensive strategy based on substantial research in regional development economics, which confirms that beneficiation ecosystems require co-ordinated public investment, skills pipelines and anchor demand,’ he says.

The potential of the green hydrogen industry is particularly notable because, while not specifically part of the mining sector, it is a crucial technology that aids the industry in decarbonising its massive energy needs, such as fuel for heavy equipment, generation of electricity and heat, and some of the industrial processes for metal treatments. It is, in effect, a transformative synergistic force within mining, as is production of green ammonia, which is a carrier for hydrogen.

One of the region’s key projects is the Prieska Power Reserve, which is aiming to produce hydrogen and ammonia in 2029, utilising solar/wind.

‘Areas such as Prieska are strategically positioned for integrated mining, renewable energy and hydrogen applications,’ according to Modise.

‘Academic research on industrial decarbonisation confirms green hydrogen as a critical enabler of climate-resilient mining and heavy industry, and this aligns with the Northern Cape Green Hydrogen Strategy and Masterplan.’

The region basically sells itself in that it is globally acknowledged for its superior and intense solar and wind resources.

Numerous solar and wind farms are evident, with billions of rands planned for developing future projects. However, as Modise points out, while some mines have begun integrating renewable energy through self-generation and power purchase agreements, many operations still rely on grid-supplied electricity because of legacy infrastructure and regulatory timelines.

‘Greater renewables uptake is, however, inevitable with wheeling frameworks being introduced that focus on GH2 ecosystem enablement, private generation thresholds, and grid expansion.

‘Energy systems research shows that renewable-powered mining significantly improves cost stability and emissions performance,’ he says.

‘Other important peer reviews and studies around mining sustainability are also proving that the deployment and integration of renewable energy alongside a transition towards green hydrogen will improve mine resilience to energy price volatility, regulatory carbon constraints and infrastructure risk in the short, medium and long term. Mines will, therefore, have a far more resilient and longer-term future.’

What will also help secure the same end goal for future-proofing is skills development across the three sectors of mining, renewables, and green hydrogen and ammonia.

This is emphasised by the NCEDA, which is working with government departments, educational institutions and industry to align skills development with future mining needs. ‘This includes technical skills for modern mining, digital systems, renewable energy operations and hydrogen value chains,’ says Modise.

‘Re-skilling is also highlighted as essential to maintaining employability during technological transitions.’

These skills programmes are also directed at junior miners, who are often involved in the development or unlocking of smaller projects that the majors don’t support. This is an oft-ignored sub-sector, which the NCEDA believes is a mistake. In that vein the organisation supports junior miners with project packaging, investor facilitation, infrastructure co-ordination and beneficiation linkage development.

‘Here we also prioritise local processing where it is economically viable, which is consistent with mineral value chain development literature that shows higher regional multipliers from downstream activity,’ says Modise.

Having comprehensively made the case that the Northern Cape is central to South Africa’s role in global critical raw material supply chains, the NCEDA believes that its support of regional energy integration through renewable energy wheeling, grid strengthening and interprovincial collaboration will ultimately also attract more international interest.

‘While the priority may be on local industrial demand, surplus renewable generation positions the Northern Cape as a net energy exporter, supporting mines and industries beyond our provincial boundaries. This will move the region towards strong beneficiation pathways of raw materials to finished products, which is also aligned to South Africa’s Just Energy Transition process,’ he says.

‘The proximity to export corridors, land availability and the abundance of renewables and minerals like manganese, copper, vanadium and emerging battery minerals underpins renewable energy, electric mobility and energy storage technologies,’ says Modise.

‘The NCEDA’s strategy is to position the province as a reliable, low-carbon and value-adding supplier to global markets, aligned with international industrial and climate policy trends.’

By Kerry Dimmer
Image: Nerette Botha