The agreement was signed following talks between Russian President Vladimir Putin and South African President Thabo Mbeki in Cape Town today.
Putin's two-day visit to South Africa is the first by a Russian head of state.
The trip is seen as part of a drive by Russia to reassert its influence in Africa and also forge close ties between the two countries in the mining and metals sectors.
At a joint news conference with Mbeki, Putin said one Russian metals production company -- which he did not name -- was planning to invest more than $1 billion in extracting manganese ore in South Africa. He also mentioned planned investments into the aluminum industry and the energy sector.
The two countries also signed a number of cooperation agreements, including an agreement on space technology.
Putin's visit is also expected to include a trip to the Robben Island prison, where former President Nelson Mandela spent 18 years as a prisoner during South Africa's apartheid years.
(ITAR-TASS, Interfax, AFP, AP)
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