Mining, an important sector in KZN, is facing tough times. Picture: Tiro Ramatlhatse
Image: Tiro Ramatlhatse
THE mining industry in KwaZulu-Natal is shedding jobs at an alarming rate, raising fears that this could trigger unnecessary migration of skilled young people in search of jobs.
Northern KwaZulu-Natal is one of the areas considered to have significant potential; however, there is currently limited mining activity, and some operations are closing down.
The Department of Economic Development, Tourism and Environmental Affairs (Edtea) has identified this sector as a catalyst for growth. Members of the Edtea portfolio committee were briefed on the state of mining in the province recently.
Head of Department, Nhlakanipho Nkontwana, speaking on the sectors that drive the province’s economy, said: “In mining, we are nowhere; if there is really something to go by, it’s very little.”
This admission comes amid the closure of mining-related activities in the province. It was reported that Assmang Manganese Cato Ridge could close, putting 600 jobs on the line, while ArcelorMittal Steel in Newcastle faces the potential loss of 3 000 jobs, along with two other companies in Northern KZN.
“We are engaging the Department of Mineral Resources to assess the impact of mining, especially in the northern part: Zululand and Umzinyathi. It is an area that we still need to pursue because it’s labour-intensive, but as far as mining is concerned, we do not feature,” said Nkontwana.
He noted that personal services and government are two key industries contributing to KwaZulu-Natal’s status as one of the leading economies in the province.
“We have identified this sector (mining) as catalytic for growth; it is labour-intensive but must be factored into the District Development Model,” he added.
Member of the Portfolio Committee, Sthembiso Magubane, said the northern KZN mining industry had huge potential but was being decimated. He highlighted that besides ArcelorMittal, two other companies have closed down.
“The closure of these other two companies has resulted in (at least) 1 000 job losses; one retrenched 800, another between 200 and 500. What is the department’s plan to attract investment in those mines?” he asked.
“The mining sector has significant opportunities in northern KZN, especially in the Amajuba District. The department needs to address the impact of the closure of Arcelor Steel, which employed many youths and heads of families in Newcastle.
At this moment, we have a college in Amajuba that produces excellent artisans, a sector that focuses on mining and factories. However, the skills being acquired in that district are declining, owing to fewer employment opportunities for the youth. This could demoralise the youth from pursuing education in the area if there are no job prospects related to the skills they acquire,” he warned.
He also pointed out that Richards Bay, in the King Cetshwayo district, was developing in mining.
“The focus cannot be on one district; that means all the youth in Zululand and Amajuba must now move to King Cetshwayo to find work. This could lead to increased pressure on the area. There are many mines in Amajuba that the department can look to for investments to open, ensuring that the people in Amajuba can remain there and that the town does not become a ghost town.”
André Lourens, economist at the Minerals Council South Africa, said according to Statistics SA data, mining and quarrying is the smallest sector in the province and has been for years. He said over the past three years (2022–2024), the sector contributed approximately R5.8 billion per year, making it the smallest contributor to the provincial economy. For comparison, in 2024, the community services, finance, and real estate sectors were the largest, contributing R160bn and R150bn, respectively.
“The sector peaked in 1997, contributing R12bn to the provincial economy. Since then, it has been in steady decline, reaching its lowest contribution of R5.7bn in 2022.
While the sector is not growing, its decline has stabilised over the past three years, with contributions remaining relatively flat.
“As with many provinces, there is significant mining potential, but unlocking it would require extensive exploration. The province is rich in mineral sands, titanium, and coal, and there is a strong possibility that undiscovered ore bodies exist.
However, realising this potential depends on increased exploration activity. South Africa has, for the past four years, attracted less than 1% of global exploration expenditure. Reigniting investor interest in exploration in South Africa is critical to ensure the long-term sustainability of mining, which will decline if the metals and minerals companies are not replenished with new deposits,” he said.