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The picture is quite clear — the mining sector is paying less to the Treasury at a time when the Treasury needs every cent it can lay its hands on.
When Finance Minister Enoch Godongwana unveils his Budget on Wednesday, 19 February 2025, one vein that he won’t be able to tap for liquidity is the mining sector.
According to the Minerals Council SA’s annual Facts and Figures publication — unveiled on Monday at the start of the Investing in African Mining Indaba — South Africa’s mining industry in 2024 paid R43.6-billion in taxes, which was 49% less than it paid in 2023.
Royalties declined by almost 37% to R16-billion while VAT payments were 24% lower at R21.5-billion. Turnover was down 9% to R1-trillion and the sector’s direct contribution to gross domestic product (GDP) fell 2.6% to R444.2-billion.
These figures are not yet set in stone but have been extrapolated from the average for the first three quarters of 2024 as the final data for the full year is still being crunched.
But the picture is quite clear — the mining sector is paying less to the Treasury at a time when it needs every cent it can lay its hands on.
There are a number of reasons for this state of affairs, starting with prices.
“… prices…
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