The South African mining industry faced substantial pressure in 2024 as lower non-gold commodity prices and logistical bottlenecks diluted the positive impacts of the absence of mining load curtailment since the end of March 2024.
This resulted in a marginal improvement in real mining production from the depressed levels of 2023. Despite these challenges, the Minerals Council South Africa‘s annual Facts & Figures 2024 booklet highlighted the industry’s critical contributions:
- The mining sector directly contributed 6% to South Africa’s total nominal GDP in the first three quarters of 2024, a slight decrease from 6.3% in 2023.
- Exported goods worth about R800 billion, representing 45% of the value of overall South African merchandise exports.
- Contributed over R100 billion to the national fiscus during 2023/24 through corporate taxes, VAT payments, and mining employee personal income tax payments.
- Provided direct employment to 471,882 people in the third quarter of 2024, despite a decline of almost 12,000 people in formal employment due to pressures in the platinum group metals (PGMs) sector.
“These meaningful contributions once again highlight the importance of mining to the South African economy. If we can make further progress on lifting the remaining constraints on mining, including the momentum to Transnet’s rail and port volume targets, dealing with crime and corruption as well as regulatory inhibitors, the sector has the potential to contribute to the performance and strength of the economy and enable broad social upliftment and progress.
This is what the collaborative efforts between the government of national unity, state-owned entities and the private sector are working towards,” says Mzila Mthenjane, CEO of the Minerals Council.
Looking forward to 2025, the Minerals Council anticipates several milestones, including the launch of a new online mining cadastre system in June, which is expected to catalyze mining exploration in South Africa.
Additionally, the publication of a critical minerals list and strategy, as well as the next iteration of the Minerals and Petroleum Resources Development Act (MPRDA), are expected in the early part of the year.
The MPRDA is anticipated to set market-friendly and growth-enhancing ‘rules of engagement’ for mining in South Africa.
Amidst these developments, it is crucial to avoid policy measures that could harm the primary mining industry and deter investment in exploration and development of new mines.
“It is an absolute imperative to have a conducive operating environment that reduces the cost of mining to encourage more mineral exploration, enhances primary mining extraction and stimulates beneficiation when appropriate on commercial grounds,” says Hugo Pienaar, chief economist at the Minerals Council.
2025 will also see South Africa holding the presidency of the Group of 20 (G20) and Business 20 (B20), which brings together business leaders from companies and business organizations in the G20 and beyond. South Africa hosts the G20 summit in late 2025.
“It is an opportunity to showcase the best of our country’s mineral potential and to share our vision of development and our contribution to enabling the global transition to a prosperous and low-carbon future,” says Mr. Mthenjane.
Impact on the Global Market and Challenges in the Energy Sector
The global market will keenly observe South Africa’s progress, particularly as it affects the supply chain of critical minerals and the broader economic landscape.
South Africa’s energy sector remains a challenge, with persistent issues in energy supply and infrastructure that impact the mining sector’s efficiency and growth potential.
Addressing these energy challenges is vital for ensuring the sustainability and competitiveness of South Africa’s mining industry on the global stage.
The South African mining industry faces significant challenges, there is potential for growth and progress through strategic initiatives and collaborative efforts.
The upcoming milestones in 2025, coupled with South Africa’s leadership role in the G20, present a unique opportunity to drive positive change and showcase the country’s mineral potential to the world.
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