The index of the volume of mining production, released by Statistics South Africa yesterday, shows the sector struggling to expand [the index is a measure that is calculated to show whether the volume of mining production is expanding or contracting].

The index slipped to 100.9 in August 2025, compared to 101.1 in 2024, 100.6 in 2023, 101.6 in 2022, 108.9 in 2021, 102.4 in 2020 and 105.6 in 2019. This marks a long-term slump in mining output, underscoring deepening challenges for a sector that remains a vital part of South Africa’s economy.

According to a 2025 report from the Southern African Institute of Mining and Metallurgy: “Job losses continue to mount, particularly in the platinum group metals (PGMs) sector, where nearly 10000 jobs have been lost due to declining metal prices.” The report adds: “Financial strain is deepening. The South African Revenue Service (SARS) has reported a sharp decline in corporate income tax revenue from mining companies, driven by falling commodity prices that have reversed gains from the previous two years.”

According to that same report: “The Minerals Council South Africa, which represents 90% of the country’s mineral production, has identified ‘high crime rates, regulatory uncertainty, escalating electricity tariffs, and deteriorating water infrastructure’ as critical barriers to recovery.”

For the unity government, the latest data come as a blow. Mining has long been championed as a driver of growth, exports, and fiscal stability. Yet the sector is being held back by a combination of very slow rail concessioning, electricity supply constraints, a policy environment widely seen as hostile to investment, and the costs of broad-based black economic empowerment compliance.