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July 16, 2025

Mining Production and Sales

May 2025

In May 2025, mining activities in South Africa showed a modest increase of 0.2%, following a revised 7.5% decline in April. This slight improvement was primarily driven by a 12.5% rise in iron ore production, which contributed 1.7 percentage points to the month’s overall growth. The main factors negatively impacting mining production growth were manganese ore, which fell by 13.0% and reduced growth by 1.0 percentage point, and coal, which decreased by 4.6%, also subtracting 1.0 percentage point from total mining activity.

For the rolling quarter ending in May 2025, seasonally adjusted mining production rose by 2.6% compared to the previous quarter ending in February 2025. Iron ore led quarterly growth, expanding by 12.6% and adding 1.8 percentage points, while coal production, the biggest detractor, contracted by 3.5% and reduced growth by 0.8 percentage points.

Annual mining sales in May increased by 18.8%, largely due to a dramatic 338.7% surge in gold sales, adding 25.1 percentage points to growth. Meanwhile, Platinum Group Metals (PGMs) fell by 15.6%, subtracting 4.1 percentage points during this period.

The mining sector is vital to South Africa’s economy, offering foreign exchange and employing around 431,000 people, according to StatsSA labor statistics. However, significant challenges lie ahead, including concerns about exports to the US following tariff announcements, the potential loss of AGOA benefits, and issues related to the recent mining charter.

Globally, geopolitical tensions between the US and China, characterised by trade conflicts and tariff wars, have disrupted markets and curtailed international trade. As a positive development, high tariffs have been temporarily reduced for 90 days following a “constructive but tense” trade meeting between the US and China on market access. The Trump administration’s tariff reprieve is set to expire on July 9, and any unresolved trade deals by August 1 will result in a 30% tariff on exports to the US from countries without new agreements.

The outcome of these negotiations in the coming weeks is critical for South Africa, potentially affecting access to the US market, financial stability, and employment. Achieving a favourable trade deal is crucial to maintaining economic benefits for South Africa now and in the future.


More Coverage

August 2025
In August, South Africa’s manufacturing output further declined by 1.5%, following a 1.3% decrease in July. This downturn was significantly below market expectations, which had forecasted a 0.3% increase for August. The Purchasing Managers’ Index (PMI) also fell by 1.4 points, from 50.8 in July to 49.5 in August 2025, indicating a less favourable business climate anticipated by manufacturers for the month.
A Balanced Path to Growth, Jobs, and Prosperity
South Africa faces significant economic challenges that threaten the nation’s stability and future prosperity. Over the past decade, sluggish growth, high unemployment—particularly among the youth—and infrastructure decay have become critical issues. These problems are compounded by inconsistent policies, energy shortages, and a prevailing uncertainty in the investment climate. The African National Congress (ANC) has recognised this urgency, unveiling a ten-point plan aimed at revitalising the economy. While this approach shows a concerted effort to address systemic issues, a complementary set of reforms proposed in the Alternative Economic Blueprint offers a promising pathway toward sustainable growth, job creation, and economic freedom.
September 2025
The South African International Liquidity Position, measured by Net Gold and Foreign Exchange Reserves, showed growth in both USD and Rand terms for September 2025.
August 2025
In August 2025, credit demand grew by 5.9%, slightly below the anticipated market prediction of 6.0% for the month. Since the initiation of interest rate cuts in September 2024, there has been a noticeable acceleration in overall credit growth, with most subcategories showing increases, particularly in July.
August 2025
International trade measures South Africa’s demand for foreign goods and services relative to its demand for domestically produced products in the global market.
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