Capital expenditure in local mining was down almost 10% in 2024, and profits decreased for a second consecutive year, falling 18.5% in 2023 and a further 1% in 2024, according to Stats SA. Describing the situation as a “horror show”, Hugo Pienaar, chief economist at Minerals Council South Africa, says current rates of exploration and the mining pipeline are also cause for concern.

The local mining sector should be able to capitalise on the demand for critical minerals such as Platinum Group Metals, used in catalytic converters and fuel cells for electric vehicles. But Pienaar says the local sector is no longer seen as globally competitive, and should harness more data to improve efficiencies and safety, as well as extend the lifespan of mines.