Gwede Mantashe labels mining industry as the bedrock of SA’s economy

The mining industry in South Africa continues to play a significant role in South Africa’s economy, despite the challenges it has faced in the previous years.

Mineral and Petroleum Resources Minister Gwede Mantashe noted that the industry is moving from the gold era following its decline to one with a wide range of mineral resources. 

He was speaking on Monday at the Invest in Africa Mining Indaba 2025 conference in Cape Town.

Mining performance

For October 2024, mining production grew by 1.4%, with the key drivers of the growth being platinum-group metals (PGM), chromium, diamonds and coal, which added 2.6 percentage points to the total.

Economists perceived the growth as strong, although weaker than the 4.9% growth recorded in September.

“The turnaround in platinum group metals was the main contributor, growing by 8.5% after contracting in the previous three months.”

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Decline in gold mining

Addressing hundreds of attendees at the conference, Mantashe highlighted how the gold mining sector still employs around 900 000 people despite its decline.

He said that in 2023, while the gold mining industry was declining, it produced 900 000 tons.

Mantashe added that in the same period, PGM produced 285 tons, making it the biggest PGM producer.

PGM in SA

PGM are a group of six precious metals, including platinum, palladium, rhodium, iridium, ruthenium, and osmium.

These metals are usually used for mobile phones, hard disks, aircraft turbines, and dental implants, among other things.

He said SA produces 73% of global PGM. He noted that in 2023, the country produced and supplied 38% of palladium and 81% of rhodium.

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How much does mining contribute to the SA’s GDP

Mantashe described the mining industry as the bedrock of the country’s economy.

The mining industry contributed 6% of the country’s total nominal gross domestic product (GDP) during the first three quarters of last year. In monetary terms, this amounted to at least R432.7 billion.

During his address, he said African leaders and investors need to promote the beneficiation of PGM close to the point of production so that the continent can stop the export of jobs and profits.

Future-proofing mining

This year’s conference will be held from 3 to 6 February under the theme Future-Proofing African Mining.

Future-proofing mining is the process of adopting practices and technologies to ensure the long-term sustainability of the mining industry. It involves balancing economic growth, social responsibility, and environmental stewardship. 

Community inclusion

Shirleen Ritchie, Partner at Webber Wentzel, told The Citizen that future-proofing mining is extrapolated as community inclusion, which was underscored by the presence, participation, and specific mention of local community stakeholders.

“The minister specifically mentioned that we would need indigenous wisdom.  Furthermore, there is a strong focus on youth participation and leadership. 

“Minister Mantashe was also clear on South Africa and Africa being investor friendly but needing to act collaboratively to ensure that Africa maximises benefits from its rich resources.”

She said a strong focus on beneficiation on the continent, with regional support among countries, was suggested.

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