Revenue from SA mining industry up 16% in 2012

Revenue from the South African mining industry increased by 16% in 2012 - compared to 36% for 2011 - on the back of higher commodity prices and a weaker rand towards the end of the period.

This is according to a report issued on Wednesday by professional services firm PwC.

Gold companies reflected the best growth with a 25% increase‚ while platinum companies recorded merely 2% growth. The remainder of the companies recorded an average increase in revenue of 22%. Operating expenses increased by 13% as opposed to the 18% recorded in the prior year.

Although the share of labour costs as a percentage of total operating expenses decreased from 39% to 36%‚ when one compares this year with the last‚ it is still by far the biggest component of the mining sector.

Over the past five years‚ wage increases in the mining industry have not only been higher than CPI‚ but on average 1-2 percentage points higher than the national average increases of all industries‚ PwC noted.