Africa’s ability to strengthen its position in the global critical minerals supply chain will depend on stronger exploration partnerships, increased investment and improved geological data, according to industry leaders participating in a recent webinar on rethinking mining exploration partnerships.
The discussions highlighted the financial and technical challenges associated with mineral exploration, particularly for junior mining companies seeking to advance discoveries into commercially viable projects.
While exploration risks cannot be eliminated entirely, industry stakeholders believe these risks can be better managed through collaboration between junior miners, established mining companies, investors and government institutions.
Sharing Exploration Risks Through Partnerships
Laura Nicholson, Industry Director for Mining Indaba 2027, said exploration risk should be shared among stakeholders rather than carried by a single organisation.
She emphasised the importance of identifying partners with the expertise and financial capacity to manage different stages of exploration and project development.
Marcus Birch, Executive: Sustainability and Business Support at Orion Minerals, highlighted the company’s experience advancing the Prieska Copper Zinc project from exploration towards development, with production expected in 2027.
Birch identified three important lessons from the project: establishing technical confidence early, completing bankable compliance and feasibility work, and building partnerships suited to the different stages of project risk.
Africa is estimated to hold approximately US$29.5 trillion in mineral wealth, representing around one-fifth of global mineral resources. However, converting this geological potential into operating mines remains a complex and capital-intensive process.
The withdrawal of several major mining companies from early-stage exploration has increased the importance of junior miners, which often face difficulties securing the funding needed to advance promising projects.
Geological Knowledge and Investment Predictability
Industry leaders also highlighted the importance of reliable geological information in improving exploration decisions and investor confidence.
Nicholson said mining stakeholders needed to accelerate access to accurate data and strengthen collaboration across the industry. Given the long development timelines associated with mining projects, better information can help companies understand risks earlier and make more informed investment decisions.
Grant Mitchell, Head of the Junior and Emerging Miners Desk at the Minerals Council South Africa, pointed to developments in the mining cadastre and the Exploration Implementation Plan as important elements in strengthening the exploration environment.
He also highlighted the potential contribution of private equity and venture capital in addressing exploration funding gaps. Greater involvement by established mining companies in mentoring junior explorers could further strengthen the project pipeline.
Geological Data as an Investment Asset
Mosa Mabuza, Chief Executive Officer of the Council for Geoscience, emphasised the importance of sustained investment in geological information.
He described geological data as a valuable resource that can support exploration activity and reveal opportunities as new technologies and interpretation methods become available.
Historical geological information can also create new value when assessed using modern exploration techniques, potentially helping mining companies identify opportunities that were previously overlooked.
The discussion reinforced the need for governments and industry participants to work together in collecting, maintaining and making geological information accessible.
Turning Exploration Uncertainty into Evidence
Geological consultant Dr Nicolaas Steenkamp said successful exploration requires companies to convert uncertainty into measurable evidence that investors can assess.
He cautioned against building exploration programmes around assumptions that a deposit will become commercially viable. Instead, projects should identify the technical and operational questions that need to be answered before investment decisions are made.
Steenkamp also stressed that issues such as water availability, energy supply, permitting and community considerations should be addressed during exploration rather than postponed until later development stages.
Achieving smaller project milestones, including geological design, metallurgical testing, processing assessments and infrastructure planning, can help demonstrate progress and build investor confidence.
Addressing the Funding Gap Between Exploration and Production
Thapelo Moamogoe, Executive Head of Metals and Mining at Standard Bank Corporate and Investment Banking, highlighted the importance of helping investors understand risks across the entire mining value chain.
Junior mining companies need to demonstrate how projects can progress from exploration through development and production, while explaining how investors may recover their capital and participate in long-term commercial value.
Transparency is also essential. Birch advised junior miners to communicate realistic targets and maintain open relationships with their partners, noting that investors are better equipped to manage challenges when they receive timely and accurate information.
Collaboration to Strengthen Africa’s Mining Pipeline
The discussions highlighted a shared industry priority: building partnerships that combine technical expertise, funding, geological knowledge and operational experience.
As demand for critical minerals continues to shape global mining investment, Africa’s ability to convert its mineral resources into productive mining operations will depend partly on how effectively stakeholders manage exploration risk.
Stronger cooperation between junior miners, major mining companies, financial institutions and government bodies could help create a more sustainable pipeline of investable exploration and development projects across the continent.
