Manufacturing Production and Sales
Mining production in South Africa rose by 4.7% in September 2024, building on a modest 0.3% increase in August. Key contributors to this growth included:
- Iron ore: up 10.0%, adding 1.3 percentage points
- Platinum Group Metals (PGMs): up 6.7%, contributing 2.1 percentage points
- Manganese: up 13.5%, contributing 0.9 percentage points
- Diamonds: up 35.4%, adding 0.5 percentage points
- Chromium ore: up 17.3%, contributing 0.8 percentage points
However, coal production declined by 4.4%, reducing growth by 1.0 percentage points, while gold production fell by 3.7%, leading to an overall reduction of 0.5 percentage points in mining production.
In September 2024, mineral sales increased by 8.0%, rebounding from a 10.7% decrease in August. Significant sales increases included:
- Manganese ore: surged 48.3%, boosting performance by 5.1 percentage points
- Chromium ore: increased by 19.4%, adding 1.5 percentage points
- Coal: up 5.9%, contributing 1.5 percentage points
- Gold: increased by 42.3%, adding another 5.1 percentage points
Despite these gains, PGMs experienced a significant decline in sales, dropping 15.9% and reducing total mineral sales value by 4.3 percentage points.
The mining sector remains vital to South Africa’s economy, driving foreign exchange and employing approximately 484,000 people directly, according to StatsSA data. After facing serious challenges from late 2022 to 2023—stemming from electricity supply issues and infrastructure bottlenecks, particularly at ports—production volumes have begun to recover in early 2024 and again in September following a slump from April to August.
The sector appears to be rebounding from a low base, supported by improved economic confidence following the still recent general elections and enhanced electricity availability. Looking ahead, mining production is expected to stabilise and grow moderately over the coming months due to increased confidence in the sector. However, mining firms remain cautiously optimistic about maintaining consistent electricity supply and resolving infrastructure challenges in the medium term, as promised by the Government of National Unity
