Mining in Africa: Review and outlook after Mining Indaba 2024

At the 2025 Mining Indaba in Cape Town, players in the South African mining industry gave a mixed account of the past year. While the end of mining load reductions in March 2024 has brought some respite, the fall in non-gold commodity prices and persistent logistical constraints have hampered any significant recovery in the sector.

According to the Minerals Council South Africa, mining production has improved slightly from the depressed levels of 2023. However, the sector's contribution to the country's nominal GDP fell from 6.3% in 2023 to 6% in 2024. The export of mining goods remains a mainstay of the South African economy, with a total value of R800 billion, representing 45% of the country's merchandise exports.

In fiscal terms, the industry contributed over R100 billion to the national budget, including corporation tax, VAT and income tax for employees in the sector. However, formal employment in the industry declined, with a loss of around 12,000 jobs, mainly due to difficulties in the platinum group metals (PGM) sector. Despite this, the mining sector still accounts for 4.5% of total formal employment in South Africa, with an average of 474,876 employees in 2024.

Mzila Mthenjane, CEO of the Minerals Council, stressed the crucial importance of the sector for the South African economy. He called for concerted efforts to remove persistent obstacles, notably by improving the efficiency of rail and port transport under Transnet's management, fighting crime and corruption, and simplifying the sector's regulations.

The year 2025 promises to be decisive, with the launch of the new online mining cadastre system in June, which aims to increase the transparency and efficiency of administrative procedures. In addition, the expected publication of a list and strategy on critical minerals and the next version of the Mineral and Petroleum Resources Development Act (MPRDA) could influence the future of the sector.

Hugo Pienaar, Chief Economist of the Minerals Council, stresses the importance of an investment-friendly environment to reduce operating costs and encourage mineral exploration. "We need to avoid policies that could harm the industry and discourage much-needed investment," he said.

As the country chairs the G20 and Business 20 in 2025, the mining industry will have the opportunity to highlight its potential and its contribution to the global energy transition. "This is an opportunity to present our vision for the responsible and sustainable exploitation of our resources," concluded Mthenjane.

The coming year will therefore be crucial for the South African mining industry, which will have to juggle persistent challenges and new opportunities to ensure its resilience and sustainable development.