On February 9, 2026, the Minerals Council South Africa held its “State of the Mining Nation” media briefing at the CTICC in Cape Town. Coinciding with the launch of the Facts & Figures 2025 Pocketbook, the briefing painted a picture of a sector that remains a bedrock of the national economy but is currently fighting to unlock its full potential against a backdrop of logistical and infrastructure constraints.
Presented by Acting Chief Economist Bongani Motsa, the data reveals a sector in transition—moving away from its historical gold-centric roots toward a diversified future led by Platinum Group Metals (PGMs).
The Changing Face of Production
The “structure of the sector” has evolved significantly over the last three decades. In 1995, gold accounted for a staggering 42.8% of mining production; today, that figure has shrunk to just 10.5%.
Taking the lead are PGMs, which now represent 27.1% of total production. However, gold remains a high-value player: despite its smaller production share, it contributed roughly 20% of total sales earnings in 2025 due to favorable pricing.
Profitability and the “Diamond Dilemma”
The industry showed resilience in the first nine months of 2025, with profits reaching R115 billion, up from R93.9 billion in the same period of 2024. This growth was driven primarily by coal, gold, and iron ore.
However, the diamond industry remains a major concern. The sector has seen a cumulative loss of R47.5 billion since 2017, suffering major losses in seven of the last eight years.
Employment: A Marginal Silver Lining
While many sectors in South Africa struggled with job losses in 2025, mining was a rare bright spot. The sector added 2,000 jobs in Q3 2025, a result of stabilized production and increased demand for specific commodities. While “marginal,” this growth stands in stark contrast to the heavy losses seen in community services and manufacturing during the same period.
The Three Pillars of Constraint
The Minerals Council was vocal about the “unlocked potential” that could be realized if three specific bottlenecks were addressed:
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Electricity: While there have been improvements—notably over 260 days without load shedding and an increase in the Energy Availability Factor (EAF) to 62.4%—the cost is staggering. Electricity tariffs have seen a >900% increase since 2007, far outstripping CPI inflation.
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Logistics: Rail constraints continue to throttle exports. Coal exports for 2024/25 sat at roughly 50.5 million tonnes (mt), a far cry from the 77mt peak achieved in 2017/18.
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Exploration: Perhaps the most alarming statistic is the decline in exploration. South Africa once accounted for 5% of global exploration expenditure; it now sits at just ~0.6%. In real terms, exploration spending dropped from a peak of R6.2 billion in 2006 to just R781 million in 2024.
Looking Ahead: 2026 and Beyond
Export earnings saw a slight dip in 2025 to R1.093 trillion (down from R1.094 trillion in 2024). A notable 20% drop in base metal exports—likely influenced by US tariffs—was offset by strong earnings in precious metals led by gold and PGMs.
As we look toward 2026, the IMF projections suggest a steady, albeit cautious, growth in global markets. The Minerals Council’s message is clear: #MiningMatters. If the government can partner with the industry to fix the rails, stabilize power costs, and incentivize exploration, the sector is poised to catalyze inclusive economic growth for the entire country.