Industry body Minerals Council South Africa finds in its latest 'Mining Matters' report that the local industry provided R470-billion in household income in 2024, which demonstrates its role in supporting livelihoods and national economic stability.

The council says the mining industry paid R195-billion in wages in 2024, comprising 5% of all salaries in South Africa. The sector also contributed R342-million to the fiscus and R193-billion in capital investment through direct and supplier activity.

While the mining industry employs 473 484 people directly, it is estimated that 1.9-million people are supported by wages and salaries paid in the mining sector – assuming an average household of four people.

In terms of the suppliers of goods and services to the mining industry, the sector supported 874 000 direct formal jobs last year, which sustained an estimated 3.5-million lives.

Notably, the organisation reports that women now make up 19% of the full-time mining workforce, which reflects industrywide transformation efforts.

In 2024, every R10-million of output generated by the mining sector supported about eight formal jobs across the economy, including direct employment in the industry and that of direct suppliers.

The average yearly wages within the mining industry last year were R577 597 for highly skilled workers, R328 996 for semiskilled workers and about R246 924 for those in low- or unskilled roles.

This compares to national average wages across all sectors of R400 958, R205 851 and R113 083 for the year, for the respective skill levels.

The industry’s R160-billion investment last year on machinery, equipment, vehicles and construction accounted for 15% of South Africa’s national gross fixed capital formation. When suppliers are included, the capital formation rose to R193-billion.

In terms of local sales, R248-billion worth of mineral sales in the domestic market supported the industrial backbone of the economy in 2024. This marked a record high for local mineral sales as domestic purchases became more diverse.

The Minerals Council explains that coal for energy generation dominated mineral sales, accounting for R135-billion, or 54%, of the total, followed by diamonds used for jewellery and industrial applications that accounted for R7.7-billion, or 3.1%, of the total local sales.

“The impact of South Africa’s mining industry reaches deep into the economy and society. Last year the industry benefited not only mine employees and their families with well-paid jobs, host communities and investors, but it supported a wide array of local businesses,” says Minerals Council CEO Mzila Mthenjane.

The latest 'Mining Matters' report marks the second iteration of the organisation’s fact-based independent study into the broad impact of mining. Mthenjane explains the report’s findings show why the mining industry must be optimised to attract and sustain investments in exploration, new mine development and existing operations.

“Doing so will unlock the untapped potential mining has to offer for the fiscus, society and investors. We are at a pivotal time in the mining industry and the country, given our rich mineral endowment, where we can uplift the performance of the industry and the trajectory of the economy, to shape our future in unprecedented ways.”

As South Africa strives to realise more benefit from its mineral wealth, the trend over the past two decades shows clearly that local businesses are increasingly buying more metals and minerals from local mines despite the constraints of erratic electricity supply since 2008 and a more-than 900% increase in electricity tariffs for large energy consumers.

Minerals Council supports beneficiation where it makes economic sense. It encourages the government to create a conducive investment environment through investor-friendly policies to grow the manufacturing sector to add value to South Africa’s minerals and metals rather than introduce measures to constrain mineral exports, which were worth R774-billion in 2024.

“Through #MiningMatters, it is clear that when mining performs and grows, South Africa thrives — unlocking economic opportunities, creating and sustaining jobs, building possibilities, and driving diversification in commercial activities and transformation across the nation,” Mthenjane concludes.