South Africa’s Mining Output Climbs as Licensing Reforms Unlock New Exploration Zones

South Africa’s mining sector posted a 3.7 percent increase in output for Q2 2025, marking a notable rebound driven by platinum group metals, gold, and chrome.

The Department of Mineral Resources and Energy confirmed that over 2,390 new mining licenses have been issued since October 2024, following the digitization of the permit system and the rollout of a centralized cadastre platform. This reform has reduced application processing times from 18 months to under 90 days, enabling junior and mid-tier miners to fast-track exploration.

The uptick in production coincides with rising global demand for platinum and palladium, particularly from the automotive and hydrogen fuel sectors. Gold output also benefited from favorable pricing, with spot prices hovering near $2,000 per ounce. Employment in the sector rose by 0.7 percent, with new hires concentrated in Limpopo and North West provinces.

Industry analysts say the licensing overhaul is restoring investor confidence and unlocking previously underexplored zones, including greenfield sites in the Bushveld Complex. The Minerals Council South Africa has urged the government to maintain momentum by addressing rail bottlenecks and energy constraints that continue to affect bulk mineral exports.