Business Reflection: Loaded for Bear: MTBPS shines light on lost revenue from missed mining opportunities
If it were not for bungled policy and implementation suppressing investment in the mining industry, the size of the Treasury’s windfall from the sector’s increased revenue payments would have been much more substantial.
The South African Treasury has witnessed a boost in revenue due to increased payments from the mining sector, according to the Medium-Term Budget Policy Statement (MTBPS) released by Finance Minister Enoch Godongwana on October 21, 2025. The mining industry contributed an additional R10.9-billion to June's collections compared to the same period in 2025/26, primarily driven by high prices for platinum group metals and gold.
This revenue stream could have been even larger if not for misguided policies and implementation issues that have hindered investment and the development of new mines. South African mining production has declined by 12.7% year-on-year in August and remains below pre-2005 levels, with exploration expenditure plummeting by 80% over the past two decades.
The sector now attracts less than 1% of global exploration investment despite its rich mineral resources. The MTBPS also highlights the importance of a clear mining policy and the need to address infrastructure constraints, crime, and illegal mining. Furthermore, a transparent mining cadastre is crucial to attract mining investment, and its rollout is expected to be completed by March 2027.
The MTBPS emphasizes that these issues are not solely about mining, as the economy would benefit from the additional mining tax revenue that could be collected annually.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
