South African miners feel the squeeze from mining input cost pressures

AN UPWARD trend in intermediate input costs for South African miners is emerging, the Minerals Council said on Friday, even though overall input costs remain historically subdued.

- TAWANDA KAROMBO

DATA from the Minerals Council shows that mining input costs edged up higher in October, reaching 2.7% year-on-year. SUPPLIED

The Minerals Council said on Friday that the emerging trend of rising mining input costs is being driven by “higher prices for intermediate mining inputs, including iron ore—which is performing stronger” than a year ago.

“These increases are putting pressure on costs where these and other minerals are used in intermediate processes. Additionally, there has been a notable rise in sawmilling and wood costs, electricity and water tariffs, and significant increases in road transportation costs,” said the Minerals Council.

These factors, it explained, were collectively driving the upward trend in mining input costs that has been recorded over the past three months.

Data from the Minerals Council shows that mining input costs edged up higher in October, reaching 2.7% year-on-year. That year, the council’s South Africa Mining Composite Input (MCI) Cost Index rose to 2.7% year-on-year (y/y), up from 2.4% in September. In the year to date period, mining input costs are averaging 1.5% y/y for 2025, compared to 3.1% over the same period in 2024.

The Minerals Council has identified that on an annual basis, October marked the end of winter electricity tariffs which started in June and ended in September.