South Africa’s mining industry underperformed in several areas last year owing to considerable challenges; however, employment defied the poor operating environment and grew, industry organisation the Minerals Council South Africa’s Comprehensive Facts and Figures 2023 book indicates.

Minerals Council CEO Mzila Mthenjane points out that the sector faced several challenges last year, including load curtailment, logistics failures, criminal activity, a deterioration in safety performance and the commodity price cycle turning against platinum group metals (PGM) and coal miners.

Against this backdrop, overall, seasonally adjusted real mining output declined by 0.2% in 2023.

However, despite these headwinds, Mthenjane says, the book illustrates the mining sector’s contribution to the country and its economy.

Moreover, the industry did not suffer as many job losses as other sectors, he points out, with employment in the last quarter of 2023 having been higher than pre-pandemic levels.

However, he warns that this performance should not detract from the fact that several subsectors in the industry are under considerable strain and experienced job losses in the first quarter of this year.

Positively, Mthenjane says, there has been some progress this year to address the key challenges that constrained the industry last year.

“Although several challenges persist, including sustained low PGM prices, we remain steadfast in our commitment to create an environment that facilitates higher mining sector growth and investment,” he avers.

Last year, the industry turnover was R1.1-trillion, an 8.3% decrease from R1.2-trillion in 2022.

Direct GDP contribution was R444.2-billion, also experiencing a decrease, of 8.1% from R483.3-billion in 2022. The book points out that despite an improvement in the last quarter, mining GDP underperformed again last year.

The percentage contribution to GDP also fell, to 6.3% from 7.3%.

Total primary sales were R794.3-billion, a 9.9% decrease from R881.7-billion.

Mineral exports also fell to R780.7-billion, an 11.4% drop from R880.2-billion.

As alluded to, gains were seen in employment, with 479 228 employed, a 2.1% increase from 469 353.

Employees also benefitted in earnings, with this at R189.6-billion, an 8.5% increase from R174.7-billion.

Similarly, pay-as-you-earn contributions by mining employees also increased, to R34.4-billion, a 9.9% growth from R31.3-billion.

Value-added tax (net outflows) was R45.4-billion, a hefty 57.1% increase from R28.9-billion.

Taxes paid by companies fell to R85.5-billion, a 4.9% decrease from R89.9-billion.

Royalties also decreased, down to R25.3-billion, an 11.2% drop from R28.5-billion.