Skip to main content
Invest Now
012 012 5270
Copyright © Aluma Capital (Pty) Ltd. All rights reserved.
Aluma Capital (Pty) Ltd is a registered Financial Services Provider (FSP 46449) in terms of The Financial Advisory and Intermediary Services Act (37 of 2002)
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.

Back to News

More Coverage

A Watershed Moment: Global Ceasefire and Massive Oil Correction Offer Crucial Relief for the SA Economy

A sudden global shift has delivered much-needed relief for South Africa. Following a Middle East ceasefire, oil prices have dropped sharply and the Rand has strengthened—easing pressure on fuel costs and inflation. While earlier price spikes still weigh on the outlook, this combined correction offers a critical window for economic stability, improved consumer confidence, and renewed growth momentum.

The Great Fuel Buffer

South Africa finds itself balancing global energy shocks with decisive local action. As rising oil prices threaten to strain consumers and key industries, government intervention has softened the immediate impact—highlighting both the urgency of the moment and the need for smarter, more resilient fiscal tools to manage future volatility.

SARB opts for Strategic Resilience

The South African Reserve Bank has opted for a “hawkish hold,” maintaining the repo rate at 6.75% despite headline inflation hitting a milestone low of 3.0%. Governor Lesetja Kganyago emphasised that while the inflation target has been met, the MPC remains wary of a potential “energy tax” on the economy, driven by global oil prices surging above $100 per barrel. Consequently, the Bank has adopted a cautious, forward-looking stance, slightly lowering the 2026 GDP growth forecast to 1.1% to account for these external shocks and ensure long-term currency stability.

Navigating the Geopolitical Crosswinds

South Africa faces renewed inflation risks despite brief market relief, driven by rising fuel costs and import dependence. The SARB is likely to hold interest rates to protect price stability.

The Perfect Storm:

This morning, South Africans received what should have been a crowning achievement for the South African Reserve Bank (SARB). Data from Stats SA revealed that the Consumer Price Index (CPI) cooled to 3.0% in February, down from 3.5% in January. This lands the country perfectly on the SARB’s new, more ambitious inflation target.