The impact of South Africa’s mining industry reaches deep into the economy and society, contributing R470 billion to household income, supporting millions of livelihoods through well-paid jobs.
The mining industry benefited not only mine employees and their families with well paid jobs, host communities and investors, but it supported a wide array of local businesses, with hundreds of thousands of jobs and families who are dependent on the industry’s sustainable future.
#MiningMatters 2025, the Minerals Council South Africa’s second iteration of a fact-based, independent study into the broad impact of mining, demonstrates how significant the industry is for the economy and the citizens of our country, benefiting thousands of businesses and their employees. Local sales of R248 billion worth of minerals supported more jobs and supports the industrial backbone of the economy.
#MiningMatters shows why it is critical for the economy and employment that the regulatory and operating environment for the mining industry are optimised to attract and sustain investments in exploration, new mine development and existing operations. Doing so will unlock the untapped potential mining has to contribute more to the fiscus, society and investors.
“We are at a pivotal time in the mining industry and country, given our rich mineral endowment, where we can uplift the performance of the industry and the trajectory of the economy and shape our future in ways that are unprecedented,” says Mzila Mthenjane, CEO of the Minerals Council.
In 2024, mining companies paid R195 billion in wages and salaries, accounting for 5% of all wages paid in South Africa. For 473,484 employees — and their families — this meant supporting and sustaining the lives and livelihoods of nearly 1.9 million people, assuming an average household of four people.
Considering just the direct suppliers of goods and services to the mining industry, more than 400,000 people are employed. Combined with mining jobs, this delivers a total direct formal employment impact of about 874,000, supporting at least 3.5 million people.
In 2024, for every R10 million in output generated by the mining sector, the industry supported approximately 8 formal jobs across the economy—this includes direct employment in the mining industry as well as direct suppliers.
Focused transformation initiatives by mining companies mean women now comprise 19% of the full-time mining workforce, showing steady progress in diversity and inclusivity to address the industry’s legacy before 1994 when women were prevented by law from working underground.
Mining provides well-paid jobs. The average annual wages within the mining industry in 2024 were R577,597 for high-skilled workers, R328,996 for semi-skilled workers, and between R246,924 for those in low- and unskilled roles.
Nationally, the average wages for the three skill levels were R400,958, R205,851, and R113,083.
The mining sector’s contribution of R470 billion to household income represented 7% of South Africa's total household income, according to Quantec; the economic and financial data consultancy gathering data for #MiningMatters.
When the household income of the sector's direct suppliers is incorporated, the total income rose to R680 billion.
In 2024, for every R10 million in output by the mining sector, R6.3 million of household income was delivered by mining operations and its direct suppliers.
Mining companies and the entire value chain of businesses servicing mines, including taxes on wages of all employees, contributed a total of R342 billion to the fiscus. This contribution was equivalent to:
- building 213,974 houses of approximately 80 square metres
- constructing 17,100 kilometres of tarred road
- paying the annual salaries of 978,166 high school teachers at a salary level of R350,000 per year.
The industry invested R160 billion in machinery, equipment, vehicles, and construction, accounting for 15% of South Africa's national gross fixed capital formation. When suppliers are included, capital formation rises to R193 billion. Capital formation is critical to sustaining economic growth.
For every R10 million worth of minerals produced, the mining industry helped generate an additional R1.8 million in new investments across the economy — through its own operations and the businesses that supply it.
The mining industry sold minerals into the local economy worth R248 billion, a record high as domestic purchases have become more diverse. Coal for energy generation has dominated mineral sales, accounting for R135 billion or 54% of the total. Eskom supplies more than 80% of South Africa’s electricity from its coal-fired power plants, while Sasol uses coal to make liquid fuel, a key source of diesel and petrol for the local economy.
In 2024, diamonds used for jewellery and industrial applications accounted for R7.7 billion (3.1%) of local sales, gold for jewellery and technological applications for R5.8 billion (2.3%), PGMs for production of autocatalysts, jewellery and industrial applications for R4.97 billion (2%), and iron ore for steel making for R5.3 billion (2.1%). Other minerals and metals made up R71 billion, contributing 28.6%, while other mining activities added R18.8 billion, or 7.6%.
As South Africa strives to realise more benefit from its mineral wealth, the trend over the past two decades shows clearly that local businesses are increasingly buying more metals and minerals from local mines despite the constraints of erratic electricity supply since 2008 and a more-than 900% increase in electricity tariffs for large energy consumers.
The Minerals Council supports beneficiation where it makes economic sense. It encourages the government to create a conducive investment environment through investor-friendly policies to grow the manufacturing sector to add value to South Africa’s minerals and metals rather than introduce measures to constrain mineral exports which were worth R774 billion in 2024.
Through #MiningMatters, it is clear that when mining performs and grows, South Africa thrives — unlocking economic opportunities, creating and sustaining jobs, building possibilities, and driving diversification in commercial activities and transformation across the nation.