DRDGold CEO Slams Lack of Community Benefits from Gold Mining Tax Revenue

DRDGold CEO Niël Pretorius expressed concern over the lack of community benefits from the tax revenue generated by gold mining in South Africa. The company's financial results showed an operating profit surge of 83% to R6.45bn, with a 40% increase in the gold price contributing to this growth.

According to Pretorius, despite the R1bn tax contribution made by DRDGold, very little of it is reinvested in the surrounding communities where the company operates. He noted that the mining industry as a whole contributed over R100bn to the national fiscus in 2025 through corporate taxes, royalties, VAT payments, and personal income tax paid by employees.

The DRDGold share price jumped about 5% on the JSE after the financial results were announced, with revenue increasing by 42% to R11.2bn and gold output hitting 4,839kg for the period. Pretorius attributed the strong performance to the company's Vision 2028 program, a four-year R10bn capital investment plan aimed at lifting combined tailings throughput and raising annual gold production.

Pretorius emphasized that it is time for a deep dive into how tax revenues are being reinvested at grassroots level, highlighting the need for mining companies to provide basic services and infrastructure support to surrounding communities. He stated that as a percentage of their contribution to the fiscus, DRDGold has seen very little of this money being ploughed back into the communities where they operate.