Mining industry weathered pandemic impact well, says Minerals Council

14th October 2021 By: Tasneem Bulbulia - Senior Contributing Editor Online

Notwithstanding the impact of the Covid-19 pandemic in 2020, including the lockdown on the industry and the economy from March 2020, the mining industry contributed R371.9-billion to gross domestic product in 2020, compared with R376.4-billion in 2019.

This is according to industry organisation the Minerals Council South Africa’s Facts and Figures 2020 Book, which was published on October 14.

According to the book, the industry employed 452 866 people in 2020, compared with 462 039 in 2019; paid employees R151.7-billion, compared with R144.4-billion in 2019; and contributed R26.2-billion to pay-as-you-earn on behalf of employees.

Moreover, it paid R34.7-billion in value-added taxes and R11.8-billion in royalties during 2020.

Primary mineral sales amounted to R609.8-billion, compared with R552.4-billion in 2019; and the industry exported R450.6-billion worth of minerals, compared with R361.7-billion in 2019.

“The negative impact on mining was lighter compared with many other parts of the economy due to the excellent cooperation and collaboration between the industry and government in getting the sector safely back to work as quickly as possible.

“Many mining companies recorded increased revenues and profits, thanks to higher commodity prices and a weaker rand,” Minerals Council CEO Roger Baxter comments.