Oil, inflation and mining: Is South Africa losing its cost advantage?

• February relief fades as oil shock lifts mining costs
• Deep-level mines face sharper inflation than open-pit rivals

JOHANNESBURG, SOUTH AFRICA – South Africa’s mining sector has moved from a brief cost reprieve into renewed inflationary pressure, as global shocks collide with structural domestic constraints.

What looked like a turning point in February 2026—when input cost inflation slowed sharply to 1.2%—is now proving temporary. A stronger rand, easing oil prices and lower interest rates had briefly stabilised operating costs across the sector.