With the investment environment in South Africa having improved quite dramatically over the last few years, the country’s well-endowed resource base is sure to benefit from more capital in exploration and beneficiation, according to diversified mining and minerals company African Rainbow Minerals (ARM).

Having sponsored the sixth South Africa Investment Conference on March 31, ARM COO Jacques van der Bijl took the opportunity to tell Mining Weekly about the value of investment in South Africa’s mining sector.

He listed the factors contributing to improved investor confidence in the region as Eskom’s maintained Energy Availability Factor of 65% which has resulted in more than 300 days of no loadshedding and government’s collaborative approach through the Government of National Unity to improve private sector participation, including in logistics. Van der Bijl pointed out that South Africa is a prime destination for extracting critical minerals that the world increasingly demands, such as platinum group metals (PGM), manganese and chrome. South Africa has more than 80% of the world’s known PGM resources and about 74% of the world’s known manganese resources.  

ARM acknowledges mining as the backbone of South African industrialisation and socioeconomic growth. Van der Bijl explains how most mining companies undertake investments in local areas in which they operate, which are often in remote areas. ARM, for one, has spent R750-million on community development initiatives in the past five years, including local community upliftment and social investments in the form of community infrastructure such as roads, bridges, clinics, health facilities and education.

Van der Bijl said the benefits of mining investment also extend to opportunities for employment, upskilling and procurement from local contractors, which particularly benefit small- and medium-sized enterprises. He emphasised that there is a multiplier effect of the stimulus that mining investments create, whether it be in infrastructure or education. “We have seen dramatic positive impacts in the lives of our local communities and overall, through collaboration with all surrounding stakeholders and government.” 

Van der Bijl cited the example of eight mining companies having worked with the Roads Agency Limpopo to complete construction in March of a new concrete bridge in the Sekhukhune district municipality. A new double-lane bridge now replaces the historic Steelpoort Bridge to cater for increased traffic and improved safety.

ARM believes local mining companies can collaborate with government and communities to deliver more meaningful impact in terms of local area development. Looking at how ARM plans to invest in its operations, Van der Bijl confirmed that the company has much brownfields growth optionality and several projects are being evaluated for board approval.

One example is the Bokoni PGM mine, with ARM having completed a definitive feasibility study for a 120 000 t/m plant that can produce about 300 000 oz/y. This after the operation was put on care and maintenance in July 2025 owing to high operating costs and low metal prices. A final investment decision will be made in May, Van der Bijl stated, taking into consideration a restructured process to ensure future profitability under better market conditions. ARM has also been developing the Merensky project at the Two Rivers PGM mine to increase production of PGM, nickel and copper.

ARM is actively expanding its copper footprint, anchored by a strategic investment in Surge Copper Corp., which is developing the Berg copper porphyry deposit in British Columbia, Canada. Additionally, ARM, through its subsidiary Assmang, is part of a consortium preparing to bid to build and operate a new 16-million tonnes a year manganese export terminal at the Port of Ngqura in the Eastern Cape.

This project aims to address logistics constraints and is expected to reach the formal bid stage in April. Van der Bijl highlighted that ARM’s growth strategy is underpinned by disciplined capital allocation that prioritises investing in its existing asset base. ARM’s vision is to be a diversified, low-cost operator of long-life mines that make a meaningful difference in the world and to stakeholders. “We have world-class assets, employees and management teams which, coupled with a strong balance sheet, provide support for our growth ambitions over a longer term,” Van der Bijl said.

He added that the company has made sure to diversify its procurement supply chain to withstand global shocks as is currently the case with the conflict in Iran. This is testament to the resourcefulness and resilience of South African mining companies such as ARM. Van der Bijl ultimately believes that South Africa remains a tier-one investment jurisdiction with strong fiscal and regulatory systems, as well as deep capital markets and solid critical mineral resources.

“Certainly, from ARM’s perspective, South Africa is ready for investment. We are very comfortable operating here and we believe that we can create long-term sustainable value for all stakeholders.”