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Frederick Mitchell, Chief Economist | Aluma Capital (Pty) Ltd
Frederick Mitchell
October 10, 2024

Mining Production and Sales

August 2024

Mining South Africa rose by 0.3% in August 2024, led by increases in manganese, PGMs, and chromium ore. However, declines in iron ore and gold production tempered the growth. Mineral sales fell by 9.9% annually, driven by a sharp drop in gold sales. The sector remains crucial for the economy, employing around 457,000 people.

Mining production in South Africa increased by 0.3% in August 2024 after a contraction in July. The primary contributors to this growth were significant increases in specific sectors: manganese mining rose 16.0% annually, contributing 1.2 percentage points to overall growth; Platinum Group Metals (PGMs) increased by 4.7%, adding another 1.2 percentage points; and chromium ore production grew by 24.8%, contributing 1.1 percentage points.

However, these gains were tempered by declines in other areas. Iron ore production contracted by 15.2%, detracting 2.1 percentage points, while gold mining fell by 4.6%, further reducing growth by 0.7 percentage points. Seasonally adjusted, mining production expanded by 2.9% from July to August 2024.

Mineral sales showed a 9.9% annual decline in August 2024, following a growth of 25.4% in July. The most significant drop was in gold sales, which plummeted by 80.5%, reducing total mineral sales value by 13.9 percentage points. Additionally, non-metallic minerals saw a 38.3% contraction, subtracting 2.3 percentage points, and PGMs decreased by 5.4%, contributing another 1.5 percentage points to the decline.

Despite these declines, some categories experienced increased sales. Manganese ore sales surged by 65.1%, boosting overall performance by 3.6 percentage points. Chromium ore sales grew by 28.2%, adding 2.1 percentage points, and coal sales increased by 5.9%, contributing 1.5 percentage points to the total sales volume.

The mining sector remains essential to the South African economy, serving as a key driver for foreign exchange and employing approximately 457,000 people directly, not including those in related industries. The sector faced severe challenges from late 2022 to 2023 due to electricity supply constraints and infrastructure bottlenecks, particularly at ports. However, production volumes have increased in early 2024 as the sector rebounds from a low base, bolstered by improved economic confidence following the general election and enhanced electricity availability.

Looking ahead, it appears that mining production may stabilize at current levels, as companies adopt a cautious wait-and-see approach regarding the government’s announced market reforms. Mining firms remain optimistically vigilant about consistent electricity supply and the resolution of infrastructure issues in the medium term, as promised by the Government of National Unity.

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South Africa is trapped in severe economic stagnation, facing a projected 1.0% growth rate for 2026, 33.6% unemployment, and sharp contractions in mining (-12.7%) and manufacturing (-4.3%). Exposed to global fuel shocks via depleted reserves and >R12.00/litre pump levies, the nation is also caught in a fiscal spiral where national debt nears 80% of GDP and interest payments exceed R1 billion daily. Escaping this trap requires four urgent structural reforms: halting interest rate hikes for supply-side inflation, replacing rigid B-BBEE quotas with job-creation incentives, scrapping Expropriation Without Compensation (EWC), and deregulating Transnet’s logistics corridors.

Mining Production and Sales for August 2026

South Africa’s mining sector remains a vital source of jobs, foreign exchange and economic growth, but August’s sharp fall in mining output and sales highlights the mounting pressure on the industry. Rising fuel and energy costs, policy uncertainty and growing trade challenges are weighing on producers, even as firm gold prices and temporary US tariff exemptions offer some relief. Read the full report for a closer look at the latest figures, the forces shaping the sector and what they could mean for mining’s future in South Africa.

MACROECONOMIC & INVESTMENT INSIGHTS | OCTOBER 2026

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International Trade and Trade Balance – August 2026

South Africa recorded a trade surplus of R20.4 billion in August 2026, as exports continued to outpace imports. Export growth has exceeded import growth over the first eight months of the year, reflecting subdued domestic demand among businesses and consumers. But with higher fuel prices and tighter monetary policy expected to weigh on spending, demand is likely to recover only gradually. Read the full report for a closer look at the trade figures and what they could mean for South Africa’s economy in the months ahead.

Private Sector Credit Extension (PSCE): August 2026

South Africa’s credit market is showing surprising resilience, with credit demand rising by 7.5% in August 2026 despite renewed interest-rate pressure, elevated inflation and mounting household costs. While mortgage advances continued to grow, the fragile recovery in the property market highlights the strain caused by subdued investment, high debt levels and rising municipal and energy expenses. At the same time, sluggish instalment credit growth and continued reliance on short-term borrowing reveal how consumers are navigating increasingly difficult financial conditions. With higher oil prices, geopolitical risks and further SARB tightening adding to the pressure, this report examines what the latest credit trends reveal about household finances, business confidence and the broader South African economy.