PIC commits R1.35bn to fund early-stage mining projects

The Public Investment Corporation (PIC) has announced a R1.35 billion funding allocation to support early-stage mining opportunities across South Africa and the rest of the African continent.

The largest asset manager in Africa with over R3 trillion in assets under management said on Wednesday that this move was aimed at boosting exploration, supporting the just energy transition, and driving inclusive economic growth.

The PIC said the funding will target mining projects that are well advanced — from post-scoping to bankable feasibility study (BFS) stage — providing critical capital at a stage often considered too risky for traditional investors.

According to the PIC, the strategic allocation will enable it to back the growth of South Africa’s mining sector through indirect investments, primarily via private equity, venture capital, specialist mining funds, and joint ventures or partnerships.

“This approach aims to mitigate the high-risk nature of early-stage mining investments while delivering attractive returns for PIC clients,” the corporation said in a statement.

The investment will be spread across a diversified portfolio of commodities, geographies and development stages, with at least 50% of the projects required to be located in South Africa.

The remaining allocation will be directed to opportunities in the rest of Africa, particularly in countries such as Zambia, the Democratic Republic of Congo, Malawi, Tanzania, and Madagascar, which hold significant reserves of critical minerals.

Target commodities include copper, cobalt, nickel, lithium, graphite, rare earth elements (REEs), tin, tungsten, tantalum, bauxite, antimony, fluorspar, manganese, and other strategic minerals aligned to South Africa’s Just Energy Transition (JET).

The PIC said the size of individual investments would range from R100 million to R400m, subject to internal approvals.

Transformation remains a core criterion to qualify for funding.

South African businesses must have a BEE Level 2 or higher, and preference will be given to applications from Historically Disadvantaged Individuals (HDIs) — including Africans, women, youth, and people living with disabilities. For projects elsewhere in Africa, the PIC will apply country-specific transformation policies.

The PIC said its latest allocation reinforces its commitment to responsible and sustainable investing, while positioning South Africa as a leader in the global shift toward green energy and critical mineral supply chains.

“This initiative supports the government’s objectives of transitioning the mining industry to be more inclusive, sustainable, and economically beneficial for all citizens,” the PIC said.

The funding is aligned with national policy frameworks such as the Mineral and Petroleum Resources Development Act (MPRDA), the Broad-Based Socio-Economic Empowerment Charter for the Mining Industry, the Exploration Strategy for the Mining Industry of South Africa (2022), and the Critical Minerals and Metals Strategy (2025).

Through this initiative, the PIC said it aims to catalyse investment in “minerals of the future”, expand the pipeline of emerging miners, and enhance South Africa’s global competitiveness in mining and mineral beneficiation.

Wholly owned by the South African government, the PIC manages assets for public sector clients, most notably the Government Employees Pension Fund.

The PIC has an investment mandate that enables it to capitalise on development focused projects, which incorporates broad areas including investments in unlisted South African-based entities, with a focus on sectors such as agriculture, manufacturing, mining, and financial services economic, environmental, and social infrastructure, as well as developmental investments in the rest-of-Africa.

In August, the PIC released its second Research Paper – Using Listed and Unlisted Financial Instruments to Fund Infrastructure on the Continent – which argues for recalibrated funding instruments.

Africa faces formidable infrastructure investment shortfalls, estimated at between $130 billion to $170bn annually, for essential power, transport, water, and digital systems, leading to underpowered energy, fragmented transport, and limited digital connectivity.

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