In the face of a dysfunctional regulator, unreliable and costly power supplies, social unrest and mafia-like shakedowns, South Africa's mining sector has had a banner year, thanks to global commodity prices. PwC has crunched the numbers in its annual report on the country's mining sector.
The numbers are off the charts.
According to PwC, revenue from mining sales for the financial year (FY) 2021 for the platinum group metals (PGMs) sector reached R300.7-billion - double the R150.9-billion posted in FY 2020. Mining sales for iron ore hit R116-billion compared with R72.7-billion last year. For gold, the figures rose to R102.6-billion from R80.7-billion.
Total mining sales shot up to almost R793-billion from around R558-billion in 2020. The sector's impact on gross domestic product (GDP) climbed to R921.2-billion from R803.3-billion. Dividends paid out doubled, while debt was slashed across the industry.
"The aggregate tax expense for the mining companies was R91bn with an effective tax rate of 27%. This represents a staggering 250% increase from the previous period and was driven by the increased profitability of the mining sector," PwC said.
The sector's net profit soared to R274-billion from R71-billion - an increase of 285%.
"The growth in SA's mining industry confirms...