MINING NEWS
Gold and PGMs account for about 40% of South Africa’s mining production and employ about 262 000 people.
Mineral price gains boost tax collections and reinforce mining’s economic role
The Minerals Council South Africa notes that the National Budget presented by Finance Minister Enoch Godongwana was delivered on the back of key milestones achieved for the South African economy. While mining was not overtly mentioned, the upswing in prices for gold and platinum group metals (PGMs) underpinned the fiscus and contributed to the R21.3 billion increase in gross tax revenue.
T he important partnership between the government and the private sector to address crises in electricity supply, logistics, and crime and corruption contributed to, inter alia, the removal of South Africa from the Financial Action
Gold and PGMs account for about 40% of South Africa’s mining production and employ about 262,000 people out of the industry’s 474,000-strong workforce. “The absence of any direct mention
With the current outlook for mining volumes to continue contracting, we’d
of mining’s performance and its contribution to the fiscus, despite its significant impact on tax and the budget surplus was a missed opportunity. Mining should be a sector of national economic priority. Given the government’s continued social expenditure to avert social distress, and to deliver essential basic services and infrastructure, mining’s
Task Force (FATF) grey list and the S&P rerating, which have improved investor sentiment and confidence towards the country. Mining tax collections increased by 29%, mainly because of higher gold and PGM prices and increased chrome and manganese exports. Near-term benefit of the upswing
like to see incentives for mining in future budgets that encourage exploration as well as assistance to sectors that are under distress such as ferrochrome and diamonds to increase production and to sustain and grow jobs in longer term.
ability to deliver, ensure its future growth, and to leverage its employment multipliers, the sector has an important role in South Africa’s
in gold and PGM prices is positive for the fiscal outlook, but the improvement is based on a small group of minerals and purely because of increased prices rather than higher production.
future social and economic security,” says Mzila
6 MODERN MINING www.modernminingmagazine.co.za | April 2026
Made with FlippingBook flipbook maker