Integrated Annual Review 2024

Report overview Download this section In this section About this report About the Minerals Council South Africa Our role in creating value for the mining and minerals sector Minerals Council at a glance Executive summary of the year under review

This integrated annual review of the Minerals Council South Africa covers the financial year from 1 January to 31 December 2024. It provides stakeholders with a comprehensive view of our strategy, performance and value creation, highlighting key developments during the period. While focused on the Council’s performance, the report also reflects the broader mining industry context where relevant. It is prepared in line with the ISSB’s International Integrated Reporting Framework, incorporating materiality principles from the GRI and SASB (now under the IFRS Foundation), and includes our contribution to the UN Sustainable Development Goals. The separate consolidated financial statements comply with IFRS for SMEs.

Minerals Council at a Glance

Capitals

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  Human Capital

• 

  Intellectual Capital

• 

  Manufacturing Capital

• 

  Natural Capital

• 

  Financial Capital

• 

  Social and Relationship Capital

Business activities

• 

  Identify

  • Identify and understand main issues of concern to members and other stakeholders
  • Examine policy issues and matters of mutual concern to industry

• 

  Communicate

  • Advocate on behalf of the industry to ensure an enabling policy, legislative, regulatory and operating environment management

• 

  Collaborate

  • Engage and partner with stakeholders to address concerns identified and devise strategies to address them effectively
  • Promote consultation and collaboration, and facilitate interaction among members

• 

  Guide

  • Guide industry on leading practice in areas of safety, transformation, industrial relations, skills development, occupational health and environmental management

Value creation through our business activities

• Strategic goal 1

  Develop a shared vision for a competitive, economy-boosting mining industry supported by all stakeholders

• Strategic goal 2

  Lobby policies, infrastructure and a social environment that drive industry growth and national benefit

• Strategic goal 3

  Communicate progress and impact of aggregated economic, environmental, social and governance (EESG) performance and adoption of leading practices

• Strategic goal 4

  Continuously enhance the Minerals Council’s effectiveness and member services

Performance impact and outcomes

• Strategic impacts

  • Industry-wide safety advocacy and media engagement
  • Member communication on safety and key initiatives
  • Amplified mining’s economic and social contribution
  • Industry representation in environmental restoration efforts

  Strategic outcomes

  • Health and safety advocacy
  • Strengthening safety leadership
  • #MiningMatters awareness campaign
  • Engagement with government on derelict and ownerless (D&O) mines

• Strategic impacts

  • Policy advocacy for investment-friendly mining
  • Addressed exploration and investment barriers
  • Lobbied for industry-aligned skills and HR policies
  • Collaborated on environmental and regulatory reforms
  • Enforcement ties on mine security

  Strategic outcomes

  • Policy advocacy and regulatory engagement
  • Investment and job retention
  • Skills development and workforce retention
  • Environmental policy and sustainability
  • Combating illegal mining and crime

• Strategic impacts

  • Advanced safety culture and digital safety data
  • Drove adoption of global sustainability frameworks
  • Strengthened health initiatives and women’s well-being
  • Promoted water and environmental best practices
  • Championed black economic empowerment (BEE) impact measurement and ESG alignment

  Strategic outcomes

  • Strengthening mining safety
  • Advancing sustainable mining
  • Improved occupational health and increased numbers of women in mining
  • Transformation beyond compliance

• Strategic impacts

  • Enhanced succession planning and talent management
  • Guided members on environmental compliance
  • Strengthened corporate citizenship and governance
  • Proactively addressed labour concerns and stability
  • Advocated flow-through shares (FTS) for exploration

  Strategic outcomes

  • Succession planning and talent development
  • Regulatory environmental compliance
  • Safeguarding worker rights
  • FTS scheme advocacy

The Chief Executive Officer’s message

Our context Download this section In this section Key features: the South African mining industry in 2024 Key features: Mineral Council’s contribution to South African mining Our external environment in 2024

Key features: the South African mining industry in 2024

In 2024, global economic growth remained steady at 3.2%, with a more favourable international environment for South African mining. Inflation pressures eased, with consumer prices stabilising in key economies after the spikes of 2022. Lower inflation, coupled with growth concerns, led major central banks to cut interest rates, including the United States Federal Reserve (Fed), the European Central Bank (ECB) and the People’s Bank of China. These policy shifts influenced global capital flows and investment patterns, impacting the mining sector.

Currency volatility remained a key theme, driven by shifting interest rate expectations and political developments. The US dollar strengthened after Donald Trump’s election victory in November, as markets anticipated higher inflation and fiscal deficits, limiting further aggressive Fed rate cuts. While the stronger dollar pressured emerging market currencies, the rand held up well, supported by improved investor sentiment following the formation of South Africa’s GNU. Regional economic trends also played a crucial role. While the US remained resilient, parts of Europe, particularly Germany, struggled. Supported by stimulus measures, China achieved its target of 5% real GDP growth. Domestically, the absence of electricity load curtailment for most of 2024 provided some support to the local mining sector.

• Our numbers show and tell the story
• Total primary sales
  (current prices) R800.9
  billion (2023: R794.2 billion)
• PAYE by mining employees* R36.1
  billion (2023: R34.4 billion)
• Employee earnings R191.0
  billion (2023: R182.1 billion)
• VAT payments* R21.5
  billion (2023: R28.3 billion)
• Direct GDP contribution (current prices) R450.5
  billion (2023: R444.2 billion)

• Employment 474,876 (2023: 479,228)
• Company tax paid* R43.6
  billion (2023: R85.5 billion)
• Royalties paid** R16.0
  billion (2023: R25.3 billion)
• % contribution to nominal GDP 6.1% (2023: 6.3%)
• Mineral exports R776.1
  billion (2023: R779.8 billion)

* 2024 refers to the 2023/24 financial year ending in March 2024; 2023 refers to the 2022/23 financial year.
** Based on National Treasury’s estimates as in the Statement of National Revenue, Expenditure and Borrowing from April 2024 to October 2024.

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  Communications

  Conveys information about the Minerals Council and the mining industry to stakeholders in an honest, transparent and balanced manner. It plays a critical role in ensuring external stakeholders are accurately and timeously informed about the South African mining industry.

• 

  Economics

  Provides input, advisory services and analysis on matters affecting the industry’s economic appeal and performance, investment appeal and other economic impacts. It is also responsible for shaping industry responses to policy and legislation affecting the sector.

• 

  Employment Relations

  Provides advisory services to members on labour relations, including labour market issues, collective bargaining, immigration matters, employment equity and social security. Lobbies key stakeholders on labour legislation and policy on behalf of the industry.

• 

  Environment

  Provides advisory services, guidance and strategic leadership on environmental sustainability, climate change, mine closure and rehabilitation in a manner that enhances members’ contributions to sustainable development. Advocates the adoption of the best environmental practices beyond regulatory requirements to reduce the environmental liabilities for mining. Undertakes lobbying and advocacy on key environmental legislation, programmes and policy on behalf of the industry.

• 

  Finance and Administration

  Provides the governance, risk management, human resources and administrative structures; and the financial, ICT and facilities management of the Minerals Council.

• 

  Health

  Provides advisory services, leadership and support in the field of occupational health, medicine and hygiene, along with advocacy and advice on TB, HIV and AIDS. Advocacy and lobbying on health legislation and policy on behalf of the industry. The Head of Health also champions the WiM Strategy.

• 

  Junior and Emerging Miners’ Desk (JEMD)

  Provides advice and support, and acts as a resource centre for junior mining and exploration member companies. It also ensures that the voice of junior and emerging miners is heard and understood by government.

• 

  Legal

  Provides legal advice in influencing legislative and other matters affecting members’ interests and creating an environment for investment attraction. The focus is on constructive policies that are consistent with the national interest. This includes addressing challenges that have arisen because of the increase in illegal mining.

• 

  Modernisation

  Promotes RD&I as a critical enabler of modernisation and growth of mining. The discipline acts to facilitate a collaborative effort on innovation that will contribute to achieving Zero Harm, improving productivity and competitiveness, and creating sustainable and socially acceptable mining.

• 

  MOSH Learning Hub

  Encourages and enables mining companies to learn from the safety and health expertise and leading practices that exist in the global and local mining industries.

• 

  Public Affairs and Transformation

  Engages with social partners on matters of public policy, drives the internal and industry transformation agenda and engages on the public policy implications of the issues affecting the industry.

• 

  Safety and Sustainable Development

  Actively promotes mineworkers’ safety and health in the workplace. It also provides high-level guidance on matters that affect the ESG impacts of the industry.

• 

  Skills Development

  Advocates the creation of an environment that enables the mining industry to develop skilled employees for advancement and deployment.

• 

  Social Performance

  Provides a collaborative and coordinated approach to community investment, local economic development and relationship building.

• 

  Strategy

  Consultative and collaborative process led by the CEO and guided by the Board to provide direction of development and exploration of opportunities and responses to risk.

• Human capital

  Resources used or spent

  • 68 people employed (48 permanent and 20 fixed-term employees)
  • R1,255,436 spent on training
  • Professional development
  • Policy compliance

  Outcomes and impacts

  • R123,433,404 paid in salaries (2023: R117,749,636)
  • 68 staff members trained (average of 3.5 hours of learning per person)
  • Annual staff turnover: 1%
  • 90% of employees are HDP
  • 40% of employees are women

  • Other capitals involved

    

  • SDG contribution

    

• Intellectual capital

  Resources used or spent

  • Facilitate research, development in mining in South Africa
  • Advancing women representation in the mining industry
  • Addressing occupational diseases, including TB and HIV and AIDS, pneumoconiosis and NCDs

  Outcomes and impacts

  • Maintained awareness of Minerals Council’s brand
  • Crafted a culture of Transformation beyond compliance
  • WC/WDM

  • Other capitals involved

    

  • SDG contribution

    

• Manufactured capital

  Resources used or spent

  • Lease and maintain office space
  • Maintain and update IT and security systems

  Outcomes and impacts

  • The office move to smaller premises resulted in reduced lease and maintenance costs
  • Reduced carbon footprint in smaller office space

  • Other capitals involved

    

  • SDG contribution

    

• Financial capital

  Resources used or spent

  • R235 million received by way of member fees
  • R189 million spent in operating costs
  • R58 million spent in Special Projects

  Outcomes and impacts

  • Financial value distributed (in addition to salaries paid above):
  • CSI spend – R3 million

  • Other capitals involved

    

  • SDG contribution

    

• Social and relationship capital

  Resources used or spent

  • Our primary stakeholder: 72 members
  • Active engagement and collaboration with key stakeholders
  • Engagement structures established

  Outcomes and impacts

  • Strengthened constructive relationships with key stakeholders, including provincial and local governments
  • Enhanced understanding of mining challenges and its economic contributions
  • Promoted exploration and mentorship through seminars and programmes

  • Other capitals involved

    

  • SDG contribution

    

• Natural capital

  Resources used or spent

  • Aligned with Green Building Council of South Africa (GBCSA) guidelines, incorporating low-carbon facilities and energy efficiency measures
  • Average 195kWh electricity/ day, 1.2kL water/day, ongoing renewable energy initiatives under consideration
  • Paperless operations, proximity to public transport and green leasing practices to support sustainability

  Outcomes and impacts

  • Reduced amount of paper used and recycled
  • Reduced water and energy consumption
  • All waste sorted at source and recycled wherever possible

  • Other capitals involved

    

  • SDG contribution