South Africa Proposes US Partnership to Expand Critical Minerals Investment

New York, The Gulf Observer: South Africa has proposed the establishment of a dedicated Critical Minerals Investment Platform and a South Africa-USA Critical Minerals Working Group to translate growing interest in the sector into concrete investment, processing and manufacturing projects.

Minister of Trade, Industry and Competition Parks Tau said the proposed mechanisms would help connect South African critical minerals projects with US industrial demand, financing, technology and long-term offtake agreements.

Tau made the remarks at a high-level Critical Minerals Roundtable hosted by Brand South Africa in partnership with Standard Bank on the sidelines of the 81st session of the United Nations General Assembly in New York.

He said South Africa sought to move beyond discussions about its mineral resources toward partnerships capable of strengthening supply chains, expanding industrial cooperation and increasing value creation from the country’s natural resources.

Focus on Value Addition

Tau stressed that South Africa did not want its relationship with the United States to be limited to the extraction and export of raw materials.

He said the country’s objective was to develop durable industrial partnerships encompassing mining, refining, processing, advanced materials, component manufacturing and, where commercially viable, downstream production.

South Africa’s Critical Minerals and Metals Strategy, approved by Cabinet in 2025, prioritises local processing and beneficiation, infrastructure, research and development, and strategic partnerships to maximise the value of the country’s mineral resources.

The minister highlighted South Africa’s significant reserves and production capabilities in platinum group metals, manganese, chromium and vanadium, as well as opportunities involving rare earth elements, titanium and zirconium.

Building a Mutually Beneficial Partnership

Tau said the United States was seeking secure and diversified sources of critical minerals, while South Africa required investment, technology, skills, long-term offtake commitments and market access.

He proposed that cooperation should be based on co-investment rather than a conventional supplier relationship.

Potential areas for value addition include battery materials, vanadium products and electrolytes for grid-scale energy storage, platinum group metal-based products for the hydrogen economy, green iron and steel, ferroalloys, specialised metals, grid and transmission infrastructure, and emerging rare earth, titanium and zirconium value chains.

Tau said priority should be given to projects that are commercially viable, capable of attracting financing and can be integrated into global markets.

Proposed Investment Platform

The minister proposed establishing a Critical Minerals Investment Platform to assess priority projects for development support, co-funding and investment.

The platform could bring together South African institutions, including the Industrial Development Corporation and other development finance institutions, with US institutions such as the US Development Finance Corporation, EXIM Bank, private investment funds and strategic corporations.

The proposed mechanism would seek to move projects through the full investment pipeline, from project preparation and technical assessment to financing, construction, production and export.

Tau also highlighted the potential role of long-term offtake agreements in improving the bankability of critical minerals projects by providing more predictable demand for minerals and processed products.

South Africa-USA Critical Minerals Working Group

Tau further proposed the establishment of a dedicated South Africa-USA Critical Minerals Working Group to advance cooperation.

The proposed group would identify priority minerals and products, connect South African projects with US industrial demand, assess financing and technology requirements, address market-access challenges and monitor progress toward investment and offtake agreements.

The minister said the initiative should focus on implementation, with clear priorities, designated institutions, timelines and measurable outcomes.

Regional Critical Minerals Value Chains

Tau also outlined the potential for South Africa to serve as an anchor for a broader Southern African critical minerals platform.

He pointed to complementary mineral resources in the region, including cobalt from the Democratic Republic of the Congo, copper from Zambia, lithium from Zimbabwe and graphite from Mozambique.

South Africa could contribute processing capacity, logistics, financial services, industrial infrastructure and access to wider African markets through the African Continental Free Trade Area.

Tau said greater regional cooperation could allow African countries to develop integrated value chains rather than relying primarily on the export of unprocessed minerals.

The approach is also aligned with the industrialisation agenda of the Southern African Development Community, which includes the development of regional critical minerals value chains alongside investment in energy, transport, logistics, water and information and communications technology infrastructure.

Focus on Concrete Projects

Tau said the New York roundtable should mark the beginning of efforts to identify specific investment opportunities involving investors, technologies, offtake requirements and financing solutions.

The engagement brought together senior representatives from business, finance, development finance and strategic sectors, including Standard Bank, the Industrial Development Corporation, Bank of America, the B20 South Africa Secretariat, Eskom, Africa Rainbow Minerals, the Development Bank of Southern Africa and MTN.

The programme was led by Brand South Africa Chairperson Ipeleng Selele, while Standard Bank Chief Executive Officer Sim Tshabalala delivered a presentation on financing critical minerals and unlocking capital for Africa.