Mining Contributes R451B to South African Economy, Says DMPR

The mining sector accounted for 6% of South Africa’s gross domestic product by contributing R451 billion to the economy in 2024, according to Gwede Mantashe, Minister of Mineral and Petroleum Resources said in Cape Town last week.

The industry’s gross value added rebounded by 0.3% in 2024, from a 0.5% decline in 2023. Export earnings reached R674 billion with R586.4 billion generated from primary minerals and R87.5 billion from processed minerals.

A total of 484 837 people were employed in the industry, marking a 0.9% decline from 489 022 people in 2023.

“Government reforms including stabilizing electricity supply and the gradual improvement of the ports and rail system, will help improve the investment climate in the mining sector,” stated Mantashe.

The 30% reciprocal tariffs imposed on South African diamond and iron ore exports to the U.S. are likely to negatively impact on earnings going forward, according to Mantashe.

“Apart from gold, prices of minerals that dominate South Africa’s mining export basket remain depressed,” added Mantashe.