The agreement, signed by South Africa’s Mines Minister Gwede Mantashe, aims to boost local processing of minerals, moving the country up the value chain instead of exporting raw resources. President Cyril Ramaphosa said, “We are no longer going to rely on extracting minerals only. We will process them at the point of extraction to increase economic value.”
The deal comes as the EU seeks to secure vital metals for clean energy, computing, and defence, reducing reliance on China, the main global supplier of rare earths. European Commission President Ursula von der Leyen said the pact would help ensure fair and reliable supply chains, noting that Russia’s war in Ukraine has highlighted the importance of diversified sourcing.
Analysts say South Africa, hosting its first G20 summit on the African continent, is leveraging the meeting to strengthen ties with the EU and China amid uncertainty over U.S. participation. Ramaphosa added, “We agreed to stand together in defence of democracy, multilateralism, human rights, and the rule of law.”