The Minerals Council of South Africa has reported a decline in total mineral sales to R792 billion in 2023 down from R883 billion in 2022.
The Minerals Council has called on the government to optimise legislation and, remove bureaucratic hurdles that are constraining mine development, mergers and acquisitions, and the operation of mines.
The Council notes that transformation in the mining industry over the past thirty years has yielded substantial black-owned and managed companies.
Outgoing President of the Minerals Council Nolitha Fakude says, “We must acknowledge the missed opportunities due to a less-than-ideal operating and legislative environment. The slow pace of approval of mining and exploration rights, erratic and expensive electricity supply and declining rail and port functionality have prevented the mining industry from reaching its full potential. The Minerals Council continues to engage with government and with other business formations to address these issues through improved operational performance and structural and regulatory reforms.”
The Minerals Council notes the mining industry has seen job losses of around 130 000 in the last 30 years. It also revealed that mineral exports fell by R100 billion in 2023 compared to 2022. It further notes that mineral royalties paid by mining companies also dropped from 25-billion-rand in 2022 to 14-billion-rand in 2023.
Chief Executive Officer of the Minerals Council, Mzila Mthenjane elaborates, “The decline in recent years of mining output performance because of infrastructure constraints is a tragedy that is manifesting in undesirable employment losses. The industry currently employs 480 000 people and with the potential for growth through investment. It leaves it to our imagination in terms of what the possibilities for job creation and poverty could be. Therefore, it is critical for the sustainability and uninterrupted contribution of the mining industry to the economy that exploration is revitalised.”
The Minerals Council says fatalities in the mining industry have decreased by 88% in the last 30 years, from 484 in 1994 to 55 in 2023.
