Gold Price Surge Yields Meager Returns for Mining Communities
DRDGold CEO Niël Pretorius expressed concern that despite the significant tax revenue generated by the gold price surge, only a small fraction is being invested in communities where mining companies operate.
The company reported an operating profit of R6.45bn for the year ended June 2026, up 83% from the previous period, following a 40% gold price rally.
Pretorius stated that 'the sad reality is that we see very little evidence of any of that R1bn finding its way back into our surrounding communities.'
He emphasized that it's time for a deep dive into how tax revenues are being reinvested at the grassroots level, citing the mining industry's significant contribution to the national fiscus through corporate taxes, royalties, VAT payments, and personal income tax.