The global mining industry faced significant headwinds in 2024, with declining revenues and profitability across major players, according to a new report by consultancy firm PWC. However, gold-focused miners bucked the trend, enjoying a surge in revenue amid economic uncertainty and rising demand from central banks.
Industry-Wide Struggles
PWC’s analysis reveals that the world’s top 40 mining companies—excluding gold producers—saw revenues decline by 3% in 2024, while earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped by 10%. The sector has been grappling with rising operational costs, infrastructure failures, and logistical challenges, particularly in key mining regions like South Africa.
In South Africa, the mining sector’s contribution to nominal GDP has fallen from 8.3% in 2012 to just 6% in 2024, reflecting broader industry struggles. “The mining industry has been weathering some storms over the years and continues on this terrain,” PWC noted, citing electricity shortages, transport bottlenecks, and global economic pressures as key constraints.
Gold’s Counter-Cyclical Boom
While other minerals face declining demand, gold has emerged as a standout performer, with revenues up 15% in 2024. According to PWC, this surge is driven by investors and central banks seeking safe-haven assets amid geopolitical tensions and economic instability.
“There’s certainly investment in gold from a risk point of view,” the report stated. “When there’s pressure and concerns around the global risk environment, investments happen in gold.” Central banks worldwide continue to increase their gold reserves, with no signs of slowing down in the near future.
Energy and Climate Challenges
The report also highlights how fluctuating energy costs impact mining operations. While high electricity prices remain a burden, some gold miners in remote areas have benefited from falling diesel and heavy fuel oil prices, supplemented by renewable energy solutions.
Additionally, climate change poses location-specific risks, including natural disasters, political instability, and regulatory shifts—all of which can disrupt supply chains. “Infrastructure failures, particularly in the South African context, have a major impact on global supply,” PWC noted.
Future Outlook
Despite current struggles, PWC emphasizes that mining remains crucial for global development, especially as urbanization and the energy transition drive demand for metals like copper, lithium, and iron ore. “These global forces are reshaping industries, making mining central to how people move, build, feed, care, and power society,” the report concluded.
For now, gold’s rally offers a silver lining, but the broader sector must navigate persistent challenges to regain stability in an increasingly volatile world.
