Al funding set to bring mining into 21st century

Minerals Minister Gwede Mantashe says the country faces challenges in developing an effective system for exploration and mining licences

- Nkateko Joseph Mabasa

Modernisation: Mineral and Petroleum Resources Minister Gwede Mantashe at the Investing in African Mining Indaba 2026. Photo: Mining Indaba

(Photo: Mining Indaba)

The financial commitments made during the G20 heads of state summit last November, such as the United Arab Emirates’ (UAE) $1 billion (about R16bn) pledge for artificial intelligence development, should be used for building an efficient mining system.

At the recent annual Investing in African Mining Indaba in Cape Town, Mineral and Petroleum Resources Minister Gwede Mantashe acknowledged that South Africa continues to face challenges in developing an effective cadastre system for exploration and mining licences.

Integrating AI could help build a more efficient system, one that restored investor confidence, accelerated licensing approvals and reduced opportunities for corruption.

Analysts estimate that R70bn is lost annually because of unregulated mining. In response, the government has implemented Operation Vala Umgodi, a police-led crackdown on illegal mining, alongside enforcement of the Mineral and Petroleum Development Act to formalise small-scale activities.

However, the department’s progress in modernising the licensing system to a digital cadastre has been slow. When operational and integrated, the digital cadastre would allow companies and regulators to manage mining rights applications online and enhance efficiency.

“It is urgent, it is slow. Actually we have discovered that the veracity of the information determines the efficiency of the system and that is making us slower than we imagined,” Mantashe said.