DMPR and IDC junior mining empowerment drive attracts R600m Anglo commitment

The Junior Mining Exploration Fund (JMEF) is gaining strong momentum two years after its launch, with global mining giant Anglo American committing R600 million to the initiative aimed at empowering South Africa’s junior mining sector.

Established with an initial capital injection of R400m, the JMEF is a joint exploration fund managed by the Industrial Development Corporation (IDC) and the Department of Minerals and Petroleum Resources (DMPR), with the Council for Geoscience (CGS) providing technical oversight and support in evaluating applications.

The fund is designed to support South African junior mining companies by providing financial assistance for early-stage exploration and prospecting activities, advancing government’s broader objectives of economic inclusion, sector transformation and equitable growth. Successful applicants receive non-repayable, convertible grants, which may be converted into equity or a profit share in the event of a successful ore body discovery.

In the first funding window, which opened in June 2024, R160m was allocated to eight junior mining companies selected from 117 applicants. Funding focused on advancing geological mapping and exploration activities in strategic minerals including copper, nickel, lithium, graphite and rare earth elements.

Following the success of the inaugural window, Anglo American formally committed R600m to the JMEF, significantly enhancing the fund’s scale and impact.

Speaking at an exploration investment event hosted by the DMPR during the ongoing Mining Indaba, IDC CEO Mmakgoshi Lekhethe welcomed Anglo’s contribution, emphasising the importance of private-sector partnerships in unlocking the country’s mining potential.

“As part of our mandate to support equitable economic growth, transformation and economic inclusion, the IDC and the DMPR each contributed R200 million to establish the JMEF. Anglo’s financial commitment validates our role in de-risking critical sectors of the economy,” said Lekhethe. Mining remains one of the IDC’s most significant focus areas, with exposure exceeding R37 billion.

DMPR Director-General Jacob Mbele said sustained exploration was essential to securing the country’s industrial future.

“Without exploration we cannot define the resources required to build the future industries we seek to anchor. Today’s engagement was aimed at positioning South Africa as a competitive and reliable exploration and investment jurisdiction,” Mbele said.

He added that the JMEF forms part of South Africa’s mineral exploration strategy, which seeks to attract investment, revive mineral development, accelerate new discoveries and ensure optimal utilisation of the country’s mineral resources.

Anglo American CEO Duncan Wanblad said the company’s participation reflected a shared ambition to grow junior exploration in South Africa.

“Working alongside the fund’s existing partners – the DMPR, IDC and CGS – our goal is to evolve this initiative into its next phase, enabling not only Anglo American but many others to participate in and benefit from junior exploration across the country, including opportunities to partner with juniors in discovering South Africa’s next world-class mines,” said Wanblad.

Building on the success of the first funding round, the IDC and DMPR have opened a second application window, with the scope expanded to include a broader range of mining commodities.

Under the revised terms of reference, applicants must be junior mining companies holding a valid prospecting or mining right, with funding requirements capped at R50 million per applicant.

Funding may be used for early-stage discovery activities such as drilling and logging, rock sample analysis, geophysical and geochemical surveys, geotechnical and geohydrological studies, environmental assessments, and the compilation of Competent Persons Reports. Advanced exploration activities, including further resource definition, metallurgical testing, environmental impact assessments, permitting, regulatory compliance and feasibility studies, are also eligible for support.

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