A new record high has been achieved for South African mineral production during 2022, marking the second consecutive year in which the industry has exceeded R1-trillion. Nonetheless, in spite of this significant contribution to the country’s economy and its citizens, there remain many concerns regarding the issues faced by the sector — such as constrained transport logistics, faltering energy supplies and almost zero net investment.
South Africa’s mineral production achieved a fresh record high of R1.18 trillion in 2022, up from R1.1 trillion in 2021, which was the first time the industry topped the trillion-rand mark. Production value was driven by strong commodity prices, giving the domestic economy a vital injection of higher taxes to bolster the fiscus, increase employment and improve wages.
The mining industry is one of very few sectors in the prevailing economic climate which is adding jobs. During 2022, the sector created 15 500 more jobs, lifting total employment to 475 560, according to the Minerals Council South Africa’s Facts & Figures 2022 annual publication.
Facts & Figures 2022, which provides in-depth data and insights into the status and performance of the mining industry, showed how important the sector is for the South African economy.
“Once again, the mining industry has shot out the lights when considering its financial performance and contribution to the economy in 2022. However, we remain concerned about the worsening constraints in rail and port logistics, which means we have yet again forfeited the benefits of high commodity prices and demand, as well as inadequate electricity supply,” says Minerals Council CEO Roger Baxter.
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