SA mining finds resilience amid volatility, eyes green transition - PwC report

THE South African mining industry has entered a new phase of resilience and reinvention, according to PwC’s SA Mine 2025 report, which highlights a sector balancing short-term headwinds with long-term transformation.

- SIPHELELE DLUDLA

The report shows that mining’s contribution to GDP held steady at around 6%, even as the sector grappled with rising costs, infrastructure bottlenecks, and policy uncertainty. Market capitalisation climbed by 8% to R1.3 trillion, driven largely by strong performances in gold and platinum group metals (PGMs).

Gold was the standout performer, hitting record highs as investors turned to safe-haven assets amid geopolitical tensions and inflation concerns. Despite flat output and deep-level mining challenges, higher prices bolstered miners’ financial performance.

PGMs also staged a comeback after a tough start to the year. Platinum prices surged above $1 600/oz, while palladium and rhodium showed renewed strength. Cost cuts and shaft closures tightened global supply, positioning local producers for recovery.

Coal remained the workhorse of domestic power generation, with output projected to increase 3% to 247 million tons in 2025. Export potential was hampered by Transnet’s rail constraints, though private-sector participation in logistics is starting to gather pace.