South Africa’s mining output increased by 4.7%
According to data released by Statistics South Africa, South Africa’s mining sector recorded a notable 4.7% year-on-year increase in production for September. This growth highlights the industry’s resilience, driven by significant performance improvements in critical minerals.
The Platinum group metals (PGMs) led in this rise, achieving a 6.7% increase and contributing 2.1 percentage points to the overall growth. Iron ore followed closely, with production climbing by 10.0%, adding 1.3 percentage points. Manganese ore was also substantially impacted, growing by 13.5% and contributing 0.9 percentage points.
Other minerals demonstrated remarkable gains as well. Chromium ore production surged by 17.3%, adding 0.8 percentage points, while diamond mining experienced an impressive recovery, with output soaring by 35.4% and contributing 0.5 percentage points to the overall increase.
The positive performance across these minerals reflects improvements in global demand and operational efficiencies within the sector. The figures underscore the importance of mining to South Africa’s economy, providing a much-needed boost to GDP and supporting jobs in the industry amidst ongoing challenges.
Coal decreased by 4.4%, and gold, which fell by 3.7%, were the only minerals to record negative contributions in September.
“Seasonally adjusted mining production increased by 3.8% in September 2024 compared with August 2024. This followed month-on-month changes of 3.3% in August 2024 and -1.1% in July 2024,” Statistics SA said.
Mineral sales in South Africa at current prices showed a robust 8% year-on-year growth in September, reflecting an improvement in the performance across several essential commodities. According to Statistics, this positive trend was driven by significant increases in the sales of gold, which surged by 42.3%; manganese ore, which climbed by 48.8%; chromium ore, which rose by 19.4%; and coal, which recorded a steady 5.8% increase.
However, Despite the overall upward trend, platinum group metals (PGMs) experienced a sharp decline, with sales dropping by 15.9%. This made PGMs the most significant negative contributor to the overall mineral sales performance in September. The dip in PGM sales contrasts with the substantial gains observed in other commodities, highlighting the varied market dynamics within the mining sector.
On a month-to-month basis, seasonally adjusted mineral sales at current prices showed remarkable improvement, increasing by 16.4% in September compared to August. This sharp rise indicates a recovery in market activity and a more robust demand for minerals. The data underscores the resilience of South Africa’s mining industry, which remains a critical pillar of the national economy despite global market fluctuations and local challenges.
