Profitability pressure undermines mining’s GDP contribution
Profits only expected to increase once depressed PGMs prices rise
09 December 2024 - 05:00
While an increase in mineral output saw SA’s mining GDP improving in the first nine months of the year, the sector’s real contribution is constrained by its lack of profitability relative to other industries.
In the first three quarters of the year, SA’s mining GDP increased by 0.7% year on year — an improvement from the 0.5% contraction recorded for the first three quarters of 2023. Due to this growth, real mining GDP for the full calendar year is set to increase for the first time since 2021. ..
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