Job losses in South Africa's mining sector: A reflection of ongoing challenges
Image: Supplied
Mining sector employment into the first quarter of this year has broadly followed the same downward trends as last year, where there were job losses among platinum group metals (PGM), diamond, and iron ore mining companies.
This was according to the Minerals Council South Africa (MCSA), the data from which showed there were 9 493 job losses in the PGM sector last year, 1 286 job losses in iron ore, while diamond mining employment was down by 1 047.
The MCSA's 70 members represent 90% of South African mineral production by value. By the end of 2024, there were 468 898 employees in the mining sector.
These three mining sectors measured by the MCSA with job losses were also those that were most affected by lower commodity prices last year, while South Africa's iron ore sector exports also suffered due to rail infrastructure problems.
Interestingly, employment in South Africa's gold mining sector fell by 2 296 employees, despite a high gold price that peaked at an all-time record last October, and the decline was reflective of broader structural problems, an MCSA spokesperson said.
Last year, coal sector employment increased by 2 213, employment in manganese mining was up by 416, while employment in chrome mining increased by 3 972. An estimated 5 744 jobs were lost in total in 2024.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Next
Stay
Close ✕
This was reflective of the need for a better regulatory and policy framework that would encourage further investment in mining, something that was still not evident in the Draft Mineral Resources Bill in its current form, an MCSA spokesperson said.
The MCSA said in a presentation to the Parliamentary Committee on Minerals and Petroleum Resources earlier this month that real mining GDP has declined in eight of the last 13 quarters - the standard definition of a technical recession is two consecutive quarters of GDP decline.
Overall mining production declined by almost 5% year-on-year, in real terms, in the first quarter of 2025, impacted also by heavy rains in January and February.
The MCSA told the committee that due to several binding constraints in the industry: electricity, poor rail and port performance, among others, production in the local mining sector was unable to respond to commodity price windfalls.
Total mining employment has declined by about 135 000 since 1994, with the decline reflecting mainly job losses in the gold sector, due to structural factors such as mature mines, declining reserves, and cost pressures.
BUSINESS REPORT
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
an hour ago
- IOL News
Zimbabwe's Rainbow Tourism Group invests R100 million in Cape Town hotel acquisition
Rainbow Tourism Group-owned Victoria Falls Rainbow hotel in Zimbabwe is within walking distance of the mighty Victoria Falls and very close to all the adventure activities in the resort town. Image: Supplied Tawanda Karombo Zimbabwe-listed hotelier, Rainbow Tourism Group (RTG), is expanding into South Africa with the $5.6 million (nealry R100 million) acquisition of a Cape Town commercial property that it intends to turn into a prime hotel. RTG, which runs city and resort hotels in Zimbabwe, said on Thursday that it was in the process of finalising a strategic acquisition in Cape Town through its South African-registered subsidiary, Rainbow Tourism Group (SA). RTG SA has entered into a sale and purchase agreement with Elleke Hospitality for this acquisition. Under the agreement, RTG will acquire the seven-storey commercial property located along Buitengracht Street in Cape Town. 'The property which is currently a commercial asset, will undergo adaptive reuse and refurbishment to transform it into a branded hotel operated under a leading international hospitality group,' said Tapiwa Mari, RTG company secretary. 'The total consideration for the acquisition is roughly 9.3% of the company's market capitalisation on the Zimbabwe Stock Exchange (ZSE).' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading RTG said the acquisition of the Cape Town property and its development into a branded hotel was in alignment with the board's overarching mandate to identify and pursue growth opportunities that support the company's long-term vision of expansion. 'To ensure world-class delivery, the Company is presently in advanced discussions with reputable international hotel brands to secure a management agreement for the acquired property,' explained Mari. 'Partnering with a global operator is expected to drive international skills transfer, operational efficiency, and increased visibility of the RTG brand on the global stage.' The redevelopment of the property into a modern, fully operational hotel will be consistent with international hospitality standards guided by the specifications and brand standards of the selected global hotel partner. This will ensure that 'the final product meets world-class benchmarks in design, guest experience, and service' delivery. RTG plans the Cape Town hotel to stand as a competitive and high-impact asset within Cape Town's hospitality landscape. To finance the acquisition, RTG has secured $6m loan facility from a Zimbabwean finance institution at terms it said were consistent with its existing borrowing arrangements. The loan facility carries a fixed interest rate of 12.5% per annum with a tenure of five years. On drawdown, the loan facility is expected to raise RTG's gearing ratio from 9% as at the end of 2024 to approximately 32% post the transaction. With a premium location along a major arterial route leading into Cape Town's Central Business District (CBD) and offering high visibility and pedestrian traffic, the acquisition property has close proximity to key business and leisure landmarks such as including the V&A Waterfront, Cape Town International Convention Centre (CTICC), the DHL Cape Town Stadium and the Bo-Kaap tourist district. 'This premium location positions the property as an ideal candidate for conversion into a hotel development that caters to both corporate and leisure travellers,' noted Mari. 'Its proximity to the CTICC enhances its suitability for the Meetings, Incentives Conferences, and Exhibitions (MICE) segment, while the surrounding cultural, culinary, and recreational attractions boost its appeal to domestic and international tourists alike.' The Cape Town acquisition 'presents an opportunity to diversify both the Group's balance sheet and revenue streams by establishing a presence in one of Africa's most vibrant and competitive tourism' markets. Cape Town is a globally acclaimed destination and a key hospitality hub offering strong market fundamentals, including high occupancy rates, well-developed infrastructure, and year-round international visitor appeal. Mari said establishing a footprint in this environment not only enhances RTG's regional and global profile but also provides direct access to global best practices in hospitality operations, customer experience, and service excellence. BUSINESS REPORT
IOL News
an hour ago
- IOL News
Trump tariffs a stone in the shoe of 'made in USA' cowboy boots
Ryan Vaughan, the CEO of Rio of Mercedes cowboy boot factory tests ostrich leather in Mercedes, Texas. In an unusual consequence of Donald Trump's tariffs, cowboy boots "made in the USA" will suffer from the 30% tariff due to come into force on South Africa, which produces the overwhelming majority of the ostrich leather so prized for these boots. The manufacture of iconic "made in the USA" cowboy boots is set to suffer from President Donald Trump's 30-percent tariffs on South African exports that came into force in August. Texas's most renowned makers of the southern US fashion staple source the ostrich leather they require exclusively from Oudtshoorn. Known as the world's "ostrich capital", Oudtshoorn is home to a few hundred thousand people and about as many of the giant flightless birds. "We just don't know how bad the impact will be, but positive it wouldn't be," said ostrich farmer Laubscher Coetzee of the tariffs that kicked in after South Africa appeared unable to negotiate a new trade deal with Trump. More than half of the global supply of ostrich-derived products - from feathers to leather and meat - comes from nearly 200 farmers around Oudtshoorn who are joined in the Cape Karoo International (CKI) group, said its managing director Francois de Wet. South Africa supplies about 70 percent of the world's production, he said. Luxury handbag manufacturers in France and Italy are among the CKI's main clients. It also ships 20 percent of its ostrich leather to top Texas bootmakers such as Lucchese, Justin and Rios of Mercedes, whose boots are sold at several hundreds of dollars a pair. Ostrich is "an extremely important leather in our industry", Ryan Vaughan, CEO of the Rios of Mercedes manufacturer, said. "It's very resilient, it forms to the foot," he said, wearing a typical cowboy hat. Coming from "a long line of cattle ranchers", his family brand was born in Texas in 1853 and employs 250 people. The tariffs "would make a dramatic impact in our business and in the western industry," he said, "because it's not just us that build a lot of cowboy boots out of ostrich leather". It is also the case of Tony Lama, an El Paso bootmaker supplied by CKI that has given a pair to every recent Republican president. Donald Trump received cowboy boots emblazoned with "MAGA" made out of "American alligator" skin. De Wet from the CKI said he believed the South African supply of ostrich leather to the US manufacturers did not run counter to a push by the Trump administration for production to be brought home. The United States did not have enough ostriches to provide the required leather, he said. "We export the raw material, the ostrich leather. They can't produce it from local ostriches in the US. They don't have them," he said. "They do all the value-adding in the United States," he said. "So therefore, in terms of the pure definition of what the Trump administration would like to see, in this case, we do it already." The soft skins, recognisable by spots left by the large ostrich feathers, are currently sold to American manufacturers for around $20 a square foot. "We exported more than the usual volume of ostrich leather to the US in the past two-three months, so we have a little bit of a buffer," said de Wet. "For the moment we don't expect any layoffs in the short term," he said. But "in the long term, if we have to pick up the full tariff, it will definitely... cause a shrinkage of our business." The consumer could also not be expected to pay an extra 30 percent for the already pricey boots, he said. "So the tariff will have to be split between the exporter... and the importer, and preferably also a part paid by the end consumer." It is the unique climate of the Little Karoo, which gets less than 400 millimetres of rain a year, that makes it ideal for ostrich rearing, said Coetzee, a fourth-generation Oudtshoorn farmer. "That is the reason the ostrich industry is still here 200 years after (it started)," he said. His great-grandfather built the family home in 1896, when the price of ostrich feathers rivalled that of gold because of their value to the women's fashion industry. The extravagant "ostrich palaces" of the time are a reminder of the industry's previous major crisis, when the market collapsed in the early 1900s as the arrival of the low-roofed motor car ended the fashion for high-feathered hats. | AFP
IOL News
2 hours ago
- IOL News
Leveraging G20 presidency: South Africa's path to bridging the digital divide
How can South Africa navigate the complexities of the digital economy during its G20 presidency? Experts weigh in on the lessons to be learned from global counterparts amid pressing challenges. Image: IOL / Ron AI The experts have weighed in on the digital economy and digital divide in the G20, giving voice to where exactly South Africa finds itself in the global geo-digital landscape and what it can learn from other countries. South Africa's G20 presidency takes place when the world is facing a series of overlapping and mutually reinforcing crises, including climate change, underdevelopment, inequality, poverty, hunger, unemployment, technological changes, and geopolitical instability. The country has embraced the theme 'Solidarity, Equality, Sustainability' for its G20 presidency, but has also incorporated the spirit of Ubuntu. On the G20 website, it states: 'Countries that attempt to prosper alone amid widespread poverty and underdevelopment contradict the essence of Ubuntu and our collective humanity.' Tackling the conversation of the digital divide and digital economy, Associate Professor Jonathan Shock of the University of Cape Town's Department of Mathematics and Applied Mathematics has explained that while we can look to other countries and their strategies, the South African landscape has its own demands. 'Countries like Estonia have surged forward with building a strong digital economy, and there are certainly lessons to be learned from them. Estonia prioritised data protection laws before they built the technological infrastructure on top; they also built national platforms, like the X-Road secure data exchange layer, which foster interoperability, mitigating potentially siloed solutions which don't speak to each other. 'Singapore has created national digital training programmes (the SkillsFuture credit programme), industry-academia partnerships, and constant monitoring to understand the effects of their interventions,' Shock said. Associate Professor Jonathan Shock of the University of Cape Town's Department of Mathematics and Applied Mathematics. Image: Shock Lab / Website 'India is the country that has most quickly built up a digital ID system, which was rolled out to around 600 million citizens over four years. This has allowed for more financial inclusion in national benefits and unlocked high economic value. However, such a system, if built, has to be done with the appropriate level of cybersecurity awareness,' he said. 'This is a non-trivial task, and there are reasonable questions about privacy, gaps in the legal frameworks, and potential security vulnerabilities.' Shock explained that it is vital to study how digital economies have been implemented around the world, then adapt these solutions to build our own. He added that AI is a potentially powerful technology when used carefully, and, with training, can empower people to create their own businesses. 'It is easier than ever for someone to use AI to build their own app, create their own digital services, connect with customers or develop effective marketing strategies, but without access to training, those potential entrepreneurs will not necessarily know that such possibilities exist.' Shock said SA needs to celebrate its diversity and richness, as well as see the need to grow our own digital solutions, which takes investment in personnel, in infrastructure, and in data. 'We need to learn from the mistakes that other countries have made, in how resources are exploited - be they data, energy, or people - and see that there are other ways forward. We also need to understand the importance of data sovereignty and the colonial patterns of data extractivism.' CEO of LeanTechnovations, Rowen Pillai, said that across the G20, the digital divide isn't just who's connected, but rather who can afford to participate at quality. Pillai explained that even in advanced economies, rural users still trail cities on speed and reliability; in emerging markets, the bigger wall is the affordability of devices and data. 'We should shift from counting towers and instead start measuring meaningful connectivity for metrics like latency, speed, reliability, affordability, and safety at a district level, and tie budgets to closing those gaps,' Pillai said. CEO of LeanTechnovations, Rowen Pillai, said that across the G20, the digital divide isn't just who's connected, but rather who can afford to participate at quality. Image: Supplied 'A major part of the challenge is to move from pilots to scale, set outcome-based Scale Gates tied to meaningful connectivity. When a pilot hits district targets on speed/latency/reliability, affordability, and safe use, it should trigger a multi-year rollout via public procurement or blended finance. 'We balance private investment with universal service by modernising Universal Service Funds (USFs) into transparent, outcome-based tenders, pairing spectrum with pay-or-play rural obligations and co-funding neutral-host/backhaul, and by publishing quarterly district scorecards so operators are paid on verified improvements, not just availability,' Pillai said. 'In parallel, align the Digital Economy Working Group agenda: connectivity + digital public infrastructure + Micro, Small and Medium Enterprises ecosystems + equitable AI and require green siting and disclosure as standard, because AI-era data centres compete for the same power and water communities rely on.' Pillai said that the country should run a two-track strategy to adopt global best-practice governance now, and scale green, affordable compute at home. 'On governance, align local guidance to the National Institute of Standards and Technology's (NIST's) AI Risk Management Framework (which is practical, risk-based, sector-agnostic) and map cross-border work to the EU AI Act timelines that will matter to our exporters. That gives South African firms clarity without slowing innovation. 'On capability, we should leverage the AI Institute of South Africa hubs, the AI Collective South Africa (or similar) to rapidly build skills in safety, evaluation, and domain-specific AI (health, mining, agriculture), and establish an open evaluation centre that small firms can use to test models and datasets. Then we co-site compute with renewables, publish power and water intensity transparently, and make green PPAs(Power Purchase Agreements) a default for any hyperscale installations,' Pillai said. 'This is how we grow AI adoption while protecting constrained grids and water systems.' [email protected]
