Report coverage
This report on trends in the mining industry includes information on the industry’s contribution to the economy, production, sales and exports, commodity prices, industry performance and issues and developments such as mineral resource depletion, critical metals for energy transition, employment and productivity and safety. This report provides an overview of trends in the mining sector at a macro level. More information on the underlying industries and their players, are contained in separate reports published by Who Owns Whom.
Report coverage
This report on trends in the mining industry includes information on the industry’s contribution to the economy, production, sales and exports, commodity prices, industry performance and issues and developments such as mineral resource depletion, critical metals for energy transition, employment and productivity and safety. This report provides an overview of trends in the mining sector at a macro level. More information on the underlying industries and their players, are contained in separate reports published by Who Owns Whom.
Introduction
• The mining sector provides materials essential for all sectors of the economy and creates employment, investment, government revenues and infrastructure.
• Recent growth came on the back of record commodity prices.
• The pandemic and invasion of Ukraine played an important role in supporting higher commodity prices from 2020 to 2022.
• With the exception of gold, commodity prices decreased in 2023.
• The fiscus is benefitting from tax, royalties, PAYE and transfer duties.
• Challenges include rising input costs, safety, and rail and port logistics constraints.
Trends
• Certain commodities needed for the green transition will become in higher demand.
• Commodity prices are softening after a three-year run.
• Cost pressures in the mining industry are largely driven by above-inflation increases.
• Labour productivity is on the decline.
• Mining production has declined since the global financial crisis.
• Mining shares have been outperforming the rest of the market over the longer-term.
• South Africa faces a depletion of its mineral reserves in the near future.
• South Africa’s mineral wealth is predominantly destined for exports markets.
• The mining industry remains an important contributor to the South African economy.
Opportunities
• Circular economy opportunities (reducing, reusing, recycling).
• Explore and develop new mineral deposits and expand existing mines.
• New technology and innovation.
• Producers investing in R&D and innovation to extend the life of mines.
• SME mining development.
• Social development of rural areas that enhances industry stability.
• The demand for certain commodities could rise on the back of creating a carbon-neutral environment.
Challenges
• China’s impact on global commodity markets (e.g. economy slowing down).
• Commodity price fluctuations.
• Electricity and water supply.
• Environmental activism (e.g. opposition to coal mining).
• Illegal mining.
• Material input cost increases (mining at depth, wages, electricity, fuel). Above-inflation administered price increases are specifically problematic.
• Resource nationalism.
• Substitution of mineral products by other mineral and non-mineral products.
Outlook
• The World Bank projects that base metal prices will fall 5% in 2024 due to slowing demand and rebound by about 6% in 2025.
• In the medium- to longer-term the minerals and metals industries will play a growing role in creating a carbon-neutral environment.
• Metals that play a role in renewable energy will be in demand, resulting in higher prices.
• Prolonged disruptions to energy markets can raise production costs of energy-intensive metals such as aluminium and zinc.
• Heightened geopolitical risk could lead to much higher gold prices.
• In an environment where government provides policy certainty, administered prices are tolerable and logistics problems are solved, the mining industry can retain its historical importance in the economy.
• However, over the short-to medium-term these challenges will remain.
Mining Industry Trends in South Africa
2023
Full Report
R 9 500.00(ZAR) estimated $534.30 (USD)*
Historical Reports
Mining Industry Trends in South Africa 2022-07-26
R 6 500.00(ZAR) estimated $365.57 (USD)*
View Report Add to CartTable of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Geographic Position | 2 |
| 2.2. | Size of the Industry | 3 |
| 2.3. | Key Success Factors | 5 |
| 3. | LOCAL | 10 |
| 3.1. | State of the Industry | 10 |
| 3.2. | Trade | 24 |
| 3.3. | Industry Performance | 32 |
| 4. | MINERAL RESOURCE DEPLETION | 36 |
| 5. | CRITICAL METALS FOR ENERGY TRANSITION | 38 |
| 6. | INFLUENCING FACTORS | 40 |
| 6.1. | COVID-19 | 40 |
| 6.2. | The Russia-Ukraine War | 40 |
| 6.3. | The Israel-Hamas War | 41 |
| 6.4. | Economic Environment | 41 |
| 6.5. | Labour | 42 |
| 6.6. | Mining Safety | 47 |
| 6.7. | Illegal Mining | 48 |
| 6.8. | Government Regulations | 51 |
| 6.9. | Input Costs | 51 |
| 7. | COMPETITIVE ENVIRONMENT | 52 |
| 7.1. | Competition | 52 |
| 7.2. | Barriers to Entry | 54 |
| 8. | INDUSTRY SUMMARY | 55 |
| 9. | OUTLOOK | 56 |
| 10. | INDUSTRY ASSOCIATIONS | 56 |
| 11. | REFERENCES | 57 |
| 11.1. | Publications | 57 |
| 11.2. | Websites | 58 |
| Appendix 1 – South Africa’s Contribution to World Mineral Reserves, 2022 | 59 |
