An Untapped Goldmine: Opportunities for South African Mining
Historically, the mining sector has contributed significantly to South Africa’s economic growth and employment, supported by a rich natural endowment of mineral resources, including Platinum Group Metals (PGMs), gold, iron ore, and manganese. Currently, the mining sector remains an important engine of South Africa’s economy, contributing ~8% of GDP and providing direct employment to roughly half a million people.
Despite this historic strength, the industry faces challenges as it seeks to sustain and grow its position. Large-scale investments and strategic partnerships will be required to unlock the value at stake in the mining sector, and prevailing roadblocks must be mitigated. Three areas stand out where mining companies can take decisive action in the short term: improve exploration to uncover new reserves, address the currently unreliable and unsustainable energy situation, and enhance the cost position of day-to-day mining activities. This paper investigates these three areas in greater detail, with recommendations and tangible examples of how mining companies can act decisively to strengthen their competitive position.