• PIC launches US$71.5m fund to back early-stage mining and finance in South Africa’s exploration pipeline.
• Half of the funds reserved for domestic projects focus on energy-transition minerals, such as copper and lithium.
• The move aims to close the financing gap and support the growth of locally owned miners through venture-style investment.

The Public Investment Corporation (PIC), which manages South Africa’s public-sector pension assets, has established a dedicated fund worth approximately US$71.5 million (R1.35 billion) to finance early- to mid-stage mining projects. The initiative aims to help bridge the country’s exploration financing gap and nurture a new generation of locally anchored mining companies.

According to local media, Moneyweb, the fund will target projects that have progressed beyond initial scoping and require capital to advance toward bankable feasibility. Individual project investments are expected to fall within the equivalent of US$5 million to US$21 million, depending on scale and geological maturity.

At least half of the portfolio will be reserved for ventures located in South Africa, reflecting the PIC’s developmental mandate and the government’s drive to expand domestic mineral ownership. Priority will be given to projects involving energy-transition minerals, such as copper, nickel, cobalt, lithium, graphite, manganese, and rare earth elements.

PIC says the new vehicle will complement its existing unlisted and developmental investment programs, which already deploy pension savings into infrastructure, manufacturing, and renewable energy assets. The mining fund introduces an exploration-stage dimension to the portfolio, addressing a persistent bottleneck in South African resource development—the limited availability of risk capital for discovery and feasibility work.

While specific project selections have not yet been disclosed, the corporation’s move signals a broader strategy shift: mobilising domestic institutional capital to revive early-stage exploration rather than waiting for foreign majors to return.

The PIC has also signed a Memorandum of Understanding with International Resources Holding (IRH) of the United Arab Emirates to explore collaboration in mining, energy, and logistics. That partnership is expected to combine international expertise with South Africa’s geological base and institutional financing capacity.

Cynthia Ebot Takang