SA mining industry holding steady - PwC report

The South African mining industry has held steady in a year characterised by a dynamic mix of challenges and progress.

Despite infrastructure constraints, policy uncertainty and rising operational costs the industry maintained its contribution to GDP at approximately 6 percent.

This reaffirms its critical role in the national economy.

Auditing firm PwC released the latest SA Mine Report on Tuesday signalling some resilience in the mining industry.

PwC said that gold stole the limelight, platinum found its feet late, bulks battled bottlenecks and “green metals” have continued to grow in importance and prominence.

Insights from the SA Mine 2025 report reveal that the sector recorded a 20 percent increase in market capitalisation, driven by record gold prices and a rebound in platinum group metals.

Green metals, which include copper, manganese, lithium and nickel, continued their upward trajectory, gaining strategic importance as global demand for clean energy technologies accelerated.

But most renewable energy projects remain behind schedule hindered by financial, technical and regulatory challenges.

"Many completed projects are still small relative to operational demand, reinforcing the sector’s continued reliance on Eskom for stable energy supply," said Vuyiswa Khutlang, SA Mine Project leader.

Although revenue remained flat, PwC said that free cash flows improved on the back of operating cash flow improvements and lower capital investment.

But the report warns that illegal mining intensified in scale and complexity, expanding beyond gold and diamonds to affect nearly all commodities, with some government intervention to address the crisis.

Overall, PwC said that the sector’s ability to adapt will be critical as it navigates ongoing volatility and positions itself for long-term, sustainable growth.

"2025 was a year of strategic re-calibration," said Laetitia le Roux, PwC’s South Africa energy, utilities and resource tax leader.