Mining Job Losses Continue to Haunt South Africa Amid Ongoing Sector Woes

South Africa’s mining sector is facing a fresh wave of job losses in 2025, continuing a downward trend that signals deeper structural and policy issues in one of the country’s most vital industries.

The latest employment data from the Minerals Council South Africa (MCSA) paints a concerning picture. Between 2023 and the first quarter of 2025, key commodities like platinum group metals (PGMs), diamonds, and iron ore have seen significant workforce reductions. Last year alone, the PGM sector shed 9,493 jobs, iron ore lost 1,286, and diamond mining was down by 1,047 jobs.

Even South Africa’s gold mining sector, which benefited from record-high prices in 2024, reported a drop of 2,296 jobs. This counterintuitive decline, according to the MCSA, underscores deeper structural issues—aging mines, dwindling reserves, and relentless cost pressures.

Glimmers of Growth Amid Overall Decline

Not all sectors fared badly. The coal industry added 2,213 jobs, chrome mining employment rose by 3,972, and manganese saw a modest increase of 416 positions. Still, the overall picture remains grim, with an estimated 5,744 net job losses in 2024.

As of the end of 2024, the total number of people employed in South Africa’s mining sector stood at 468,898, according to the council, which represents around 90% of national mineral production by value.

Rail Woes, Weather and Policy Paralysis

Several external and internal challenges continue to strangle growth. Poor rail and port infrastructure, electricity supply problems, and extreme weather events, including heavy rainfall in January and February—have hampered productivity.

Compounding matters, the Draft Mineral Resources Bill still lacks clear incentives to encourage new investment in the sector. “There’s still no sign of the regulatory certainty we need,” said an MCSA spokesperson.

The MCSA recently told Parliament that real mining GDP has fallen in eight of the last 13 quarters, pushing the sector into what can be considered a technical recession. Overall mining production dropped nearly 5% year-on-year in Q1 2025.

Gold Sector Decline Drives Long-Term Job Cuts

Since the dawn of democracy in 1994, South Africa has lost about 135,000 mining jobs, largely due to the decline of gold mining. Once the backbone of the country’s economy, gold mines have become increasingly unviable, weighed down by geological and financial headwinds.

Call for Urgent Reform

The MCSA insists that without urgent regulatory reform, investment will remain elusive, and job losses will persist. The industry is calling on government to rework legislation to attract investors and ensure the long-term sustainability of a sector that still holds immense potential for employment and economic growth.

{Source: IOL}

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