This audio is brought to you by Astec Industries, a Global Leader in manufacturing equipment for infrastructure, including asphalt production, construction, and material processing, driving innovation and sustainability.

South Africa's mining sector is shifting gears to thrive following a year of strategic recalibration to position itself for future growth. This was among the many messages of PwC Africa energy, utilities and resources leader Andries Rossouw and PwC SA mine project leader Vuyiswa Khutlang in their presentation on Tuesday of PwC's 50-page 'SA Mine 2025'.

In the 12 months to June 30, gold has reached record highs, platinum group metals (PGMs) have rebounded, and green metals are continuing to rise in strategic importance amid electrification, energy storage and networks all requiring extensive volumes of copper, nickel, lithium, cobalt, manganese, vanadium and rare earth elements.

South Africa's mining sector continues to face structural challenges, including an exploration backlog, slow licensing processes, limited capacity for battery-grade production, and a shortage of skills in hydrometallurgy and chemical processing.

These issues are compounded by intense competition for capital, particularly against jurisdictions with faster permitting regimes.

In response, the government's critical minerals strategy aims to close these gaps by prioritising geoscience investment, streamlining permitting, enhancing local value addition, and enabling infrastructure such as power and logistics. The strategy also focuses on developing skills, supporting research and development and introducing tailored financing mechanisms.

Importantly, it promotes balanced exports and regional value chains - an approach that aligns with the African Union's green minerals strategy.

In the 12 months to June 30, politics steadied, policy showed intent, and boardrooms reshaped portfolios for the next cycle.

Mining output rose 2.4% year-on-year, supported by a higher production of PGMs, coal and chrome.

The mining industry's contribution to South Africa's GDP remained broadly stable at around 6%, underscoring its continued strategic importance despite employment and cost challenges.

Mining's market capitalisation rose by 8%.

Third-party access to rail moved from concept to early implementation, signalling gradual progress in infrastructure reform.

The integration of renewable energy and decarbonisation is being embraced as part of its electricity consumption strategy, aiming to achieve cost savings and a greener energy mix.

As of June 30, 1 820 MW of renewable energy capacity had been installed of the 3 500 MW pledged.

Also advancing are digitisation and AI, capital allocation, restructuring, maintenance, water management and waste management.

The mining sector's commitment to cost-saving initiatives reflects a strategic advance toward operational resilience, sustainability and long-term competitiveness through control of the controllables.

Net profit in the 12 months to June 30 was up 24%, an increase of R16-billion, and the aggregate tax expense of the mining companies was R26-billion, at an effective tax rate of 25%.

Free cash flows increased by 219% owing to the increase in profits, more specifically those in the gold sector.

Gold's sustained rally has re-priced revenues and cash flows across the industry. For African miners and policymakers, the question is not whether gold is valuable but where that value accrues along the mining chain and how to close the persistent valuation gap with global peers.

However, equity valuations continue to lag. Globally, gold miners' shares have not kept pace with bullion prices during this cycle and for African miners, the discounts are often even wider. This is because of the perceived sovereign and operating risks of the jurisdictions in which they operate. Even some of the continent's top producers continue to trade at a discount to their global counterparts and to the metal itself. This is despite Afric...