It’s been a year characterised by a dynamic mix of challenges and progress for South Africa’s mining sector. Despite infrastructure constraints, policy uncertainty and rising operational costs, the industry maintained its contribution to GDP at approximately 6%, reaffirming its critical role in the national economy. Gold stole the limelight, platinum found its feet late, bulks battled bottlenecks and “green metals” have continued to grow in importance and prominence.

Strong market performance amid volatility

Insights from our newly release SA Mine 2025 reveal that the sector recorded a 20% increase in market capitalisation, driven by record gold prices and a rebound in platinum group metals (PGMs). Green metals continued their upward trajectory, gaining strategic importance as global demand for clean energy technologies accelerated. Although revenue remained flat, free cashflows improved on the back of operating cashflow improvements and lower capital investment.

Illegal mining escalates as a national priority

Illegal mining intensified in scale and complexity, expanding beyond gold and diamonds to affect nearly all commodities. The government responded with four dedicated work streams, with law enforcement efforts receiving the most public attention. “The issue now involves billions of rands and requires coordinated, cross-border action that addresses both economic and social dimensions” says Andries Rossouw, PwC’s Africa Energy, Utilities and Resources Leader.

Operational discipline and innovation

Mining companies sharpened their focus on cost management and portfolio optimisation. M&A activity was targeted and strategic, aimed at securing critical minerals and enhancing operational efficiency. Key cost control measures included:

Adoption of AI and digital tools
Investment in renewable energy projects
Workforce rationalisation

However, 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” says Vuyiswa Khutlang, SA Mine Project Leader.

Looking ahead: Collaboration and execution will be key

“2025 was a year of strategic recalibration” says Laetitia le Roux, PwC’s South Africa Energy, Utilities and Resource Tax Leader. The sector’s ability to adapt – through innovation, collaboration and disciplined execution, will be critical as it navigates ongoing volatility and positions itself for long-term, sustainable growth.