South Africa’s Department of Mineral Resources and Energy (DMRE) and the Industrial Development Corporation (IDC) have signed a memorandum of agreement (MOA) to establish the Junior Mining Exploration Fund (JMEF).
The MOA was signed at the African Mining Indaba in Cape Town.
The primary goal of the fund is to facilitate finance for South African junior mining firms, allowing them to carry out exploration activities, enhance their access to mine ore deposits, and foster economic inclusion to achieve fair and balanced economic growth.
“We cannot overstate the significance of this industry to our economy. Mining is not only the backbone of our economy but is the largest employing sector in this country,” said IDC chief operating officer Joanne Bate.
“Our exposure has informed us of the many challenges facing emerging black-owned mining companies that are looking for a foothold in this sector. Exploration costs can be onerous on small mining firms, and therefore, it is our hope that the fund will help alleviate the challenges facing Junior mining companies.”
The IDC will administer and manage the fund, while the DMRE, with help from the Council for Geoscience, will choose which minerals can be sponsored for exploration under this project.
Mathew Nyaungwa, Editor in Chief of the African Bureau, from Cape Town, South Africa, Rough&Polished
