SOUTH AFRICA · MINING
Key Facts
- —The country South Africa is a major mining nation and one of the world’s main sources of platinum and gold.
- —What happened PwC’s annual SA Mine review, released on Tuesday 6 October, shows a price-driven profit surge; News24 says mining taxes more than doubled.
- —The numbers Taxes paid by mining companies reached about R50 billion (about US$3.0 billion) over the past year, according to News24’s report on the PwC study.
- —Official data Treasury royalty receipts from April to August more than tripled to R9.7 billion (about US$586 million) from a year earlier.
- —The driver Average US dollar gold and platinum prices from July 2025 to June 2026 were 50% and 80% higher than a year before, PwC says.
- —What it means for US readers More tax eases pressure on government borrowing, while the price boom lifts New York-listed miners such as Sibanye-Stillwater, Harmony Gold and AngloGold Ashanti.
- —Still open Output grew only 2%, a draft mining law worries investors, and the windfall would shrink if metal prices fall.
South Africa’s mining taxes more than doubled over the past year on soaring gold and platinum prices, News24 reported on Tuesday 6 October. For US investors, the windfall eases pressure on government borrowing, and the same price boom has lifted miners whose shares trade in New York.
The South African news site put miners’ taxes at about R50 billion (about US$3.0 billion), in a report on PwC’s annual SA Mine review. Official National Treasury data show mineral royalties collected from April to August more than tripled from a year earlier.
What PwC Found in South Africa’s Mines
PwC, the global audit and consulting firm, publishes SA Mine each year as a review of the results of mining companies listed in South Africa. The 2026 edition, released on Tuesday 6 October, covers the year to the end of June 2026.
In News24’s headline, PwC praised the local tax regime as “fantastic”. The surge in mining taxes rests on how much more money the miners made.
Revenue among the companies PwC analysed jumped 38% to R786 billion (about US$47.5 billion), the mining news site Miningmx reported from the study. That is at about 16.5 rand to the US dollar on 7 October 2026.
Earnings before interest, tax, depreciation and amortisation, a common gauge of operating profit, rose 74% to R214 billion (about US$12.9 billion). Free cash flow, the money left after running costs and investment, rose 147%.
The companies’ combined market value rose 23% to R1.61 trillion (about US$97.4 billion), PwC says. That beat the rest of the Johannesburg Stock Exchange.
Gold and Platinum Prices Did the Heavy Lifting
Prices, not extra tonnes, drove the gains. Average US dollar gold prices from July 2025 to June 2026 were 50% higher than in the previous 12 months, and platinum prices 80% higher.
Platinum belongs to the platinum group metals (PGMs), which also include palladium and rhodium and are used in car exhaust catalysts, industry and jewellery. Revenue at the PGM companies PwC studied rose 59% to R429 billion (about US$25.9 billion).
Revenue at the gold companies rose 41% to R185 billion (about US$11.2 billion). PGMs now make up 28% of South Africa’s mining revenue, up from 21%, and gold 23%, up from 19%.
What the Treasury’s Own Numbers Show
The National Treasury, the finance ministry department that runs the budget, publishes monthly revenue figures. Its statement to the end of August shows higher mining taxes reaching public coffers.
Mineral and petroleum royalties, set by a 2008 law, brought in R9.7 billion (about US$586 million) from April to August. The same months a year earlier yielded R3.0 billion (about US$184 million).
Nearly all of it arrived in June, when R9.7 billion (about US$588 million) came in. The Treasury had budgeted R12.1 billion (about US$735 million) for the whole fiscal year.
Corporate income tax from all companies rose 23% to R155.8 billion (about US$9.4 billion) over the same five months. Total gross tax revenue grew 7.9% to R819.8 billion (about US$49.6 billion).
Spending still runs ahead of income. From April to August the national government spent about R1.0 trillion (about US$60.5 billion) against revenue of R812 billion (about US$49.1 billion).
Profits Are Up, Production Is Not
The boom has not yet produced more metal. Mining output rose just 2% in the year to June and stayed about 5% below 2019 levels, according to the PwC study.
Andries Rossouw, who leads PwC’s energy, utilities and resources practice in Africa, said companies favoured efficiency and longer mine lives, Miningmx reported. “We haven’t really seen the large-scale expansion that we would like to see,” he said.
Capital spending by the companies analysed reached R121 billion (about US$7.3 billion). More than R120 billion (about US$7.3 billion) is committed to projects under way.
Vuyiswa Khutlang, an energy, utilities and resources assurance partner at PwC South Africa, said higher prices had strengthened the operating environment. “The focus now is on translating these gains into sustained productivity, investment and economic value,” she said.
A Draft Mining Law Worries Investors
A key policy risk is the proposed Mineral Resources Development Bill, a draft law that would rewrite the rules for mining rights. Its treatment of old mine dumps and tailings, the waste left from processing ore, is a particular concern.
The Minerals Council South Africa, the industry body representing the country’s mining companies, has opposed parts of the bill. It says the draft, in its current form, does not encourage the investment and growth the industry needs.
“The industry needs clarity on security of ownership and on tenure,” Rossouw said. He added that much of the money for new platinum and copper projects comes from abroad, so South Africa must compete for capital.
What It Means for US Readers
For holders of South African government bonds, higher mining taxes mean less pressure to borrow. Spending still outpaces revenue, so the windfall buys the Treasury breathing room rather than a surplus.
Several big miners with South African roots trade on the New York Stock Exchange. Sibanye-Stillwater (SBSW) also runs the Stillwater and East Boulder platinum-group-metal mines in Montana.
Harmony Gold, based in Randfontein near Johannesburg, has American depositary receipts listed as HMY. AngloGold Ashanti trades as AU and has its group headquarters in Greenwood Village, Colorado.
The flip side is exposure to metal prices. If gold and platinum fall, mining taxes could shrink just as quickly as they rose.
What Is Not Known
It is not known whether the roughly R50 billion (about US$3.0 billion) in mining taxes will recur, because it depends on metal prices. PwC’s sample covers listed companies, not every mine in the country.
It is not yet clear how the Treasury will use the extra revenue. Finance Minister Enoch Godongwana presents his mid-year budget update to Parliament on Wednesday 21 October.
It is also unclear whether gold and platinum prices will hold, or what final form the draft mining law will take.
More: South Africa news in English, every day from The Rio Times.
Frequently Asked Questions
Why are South Africa’s mining taxes rising?
Average gold prices were 50% higher and platinum prices 80% higher from July 2025 to June 2026 than a year earlier, PwC says. Higher prices raised profits, and with them mining taxes such as income tax and royalties.
How much tax did South African miners pay?
News24, reporting on PwC’s SA Mine 2026 review, put mining taxes at about R50 billion (about US$3.0 billion) over the past year. Treasury data show mineral royalties of R9.7 billion (about US$586 million) from April to August alone.
Which South African miners can US investors buy?
Sibanye-Stillwater (SBSW), Harmony Gold (HMY) and AngloGold Ashanti (AU) trade on the New York Stock Exchange. Sibanye-Stillwater also operates platinum-group-metal mines in Montana.
Is South Africa producing more metal?
Barely. Mining output rose about 2% in the year to June 2026 and remained about 5% below 2019 levels, according to PwC.
What is the Mineral Resources Development Bill?
It is a proposed law that would rewrite South Africa’s mining-rights rules, including those for old mine dumps and tailings. The Minerals Council South Africa says the current draft does not encourage the investment the industry needs.
Sources: News24, 6 October 2026; PwC South Africa press release on SA Mine 2026 (via IT-Online), 6 October 2026; Miningmx, 6 October 2026; National Treasury, statement of revenue, expenditure and borrowing as at 31 August 2026, August 2026; National Treasury, Table 1 Revenue, April to August 2026, August 2026; National Treasury, media advisory on the 2026 Medium Term Budget Policy Statement, 31 August 2026; Harmony Gold investor page, 7 October 2026; AngloGold Ashanti investor page, 7 October 2026; Sibanye-Stillwater, 7 October 2026.
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