South Africa’s mining production slips 0.9% in November 2024

South Africa’s mining production declined by 0.9% year-on-year in November 2024, according to Statistics South Africa (StatsSA). The recently published Mining: Production and Sales report said that the decrease was driven largely by downturns in gold, iron ore, coal, and diamond production, highlighting ongoing challenges faced by the mining sector, the recent report said.

KEY CONTRIBUTORS TO THE DECLINE IN MINING

Gold output fell by a notable 11.5%, taking away 1.5 percentage points from overall mining production. Iron ore production decreased by 3.8% (a 0.5-point deduction), coal output dropped by 1.6% (a 0.3-point impact), and diamond production declined by 11.4% (a 0.2-point reduction).

Despite these losses, some minerals saw positive growth. Platinum group metals (PGMs) increased by 4.0%, contributing 1.3 percentage points, while chromium ore rose by 15.6%, adding 0.7 points to the total. These gains have provided some relief to the mining sector.

MONTH-ON-MONTH AND QUARTERLY PERFORMANCE

Seasonally adjusted mining production also fell by 0.2% in November 2024 compared to October 2024, following decreases of 2.8% in October and a 4.2% rise in September. However, over the three months ending November 2024, seasonally adjusted mining production increased by 4.0% compared to the previous three months.

Key contributors to this quarterly growth included PGMs (up 7.2%, contributing 2.2 percentage points), iron ore (up 9.4%, adding 1.3 points), and coal (up 2.7%, contributing 0.6 points).

MINERAL SALES SHOW ROBUST GROWTH

In contrast to the production decline, mineral sales at current prices saw an 8.1% year-on-year increase in November 2024. This was boosted by a remarkable 93.4% surge in gold sales, which contributed 11.4 percentage points to the overall increase. Coal sales grew by 8.5% (adding 2.1 points), while PGMs rose by 4.3% (contributing 1.0 point).

The only major negative contributor to mineral sales was iron ore, which dropped by 28.2%, subtracting 4.4 percentage points from the total.

StatsSA’s report highlights the mixed performance across the mining sector, with production challenges in key areas offset by good sales growth in others. The sector remains critical to South Africa’s economy, and its performance has wide-reaching implications for a large sector of employment in the country.

SHOULD THE GOVERNMENT PLAY A MORE ACTIVE ROLE IN SUPPORTING THE MINING SECTOR TO ADDRESS ITS CHALLENGES AND PROMOTE SUSTAINABLE GROWTH?

Let us know by clicking on the comment tab below this article or by emailing info@thesouthafrican.com, or sending a WhatsApp to 060 011 0211.

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