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 15, 2025

Mining Production and Sales

August 2025

In August 2025, mining activity in South Africa declined by 0.2% year-on-year, following a 5.1% increase in July.

This decrease was mainly driven by:

  • A 3.0% drop in platinum production, which contributed -0.9 percentage points to the overall contraction for the month.
  • A 3.6% decline in gold production, subtracting another 0.4 percentage points.
  • A 3.4% contraction in manganese mining, accounting for an additional 0.3 percentage points.

For the rolling quarter ending August 2025, seasonally adjusted mining production increased by 3.3% compared to the previous three months. The quarterly growth was primarily driven by:

  • Platinum mining, which expanded by 9.1%, contributing 2.6 percentage points.
  • Coal production, which grew by 3.6%, adding another 0.8 percentage points.

Nominal mining sales increased by 23.3% in August. This positive trend was supported by several subsectors, notably:

  • Platinum sales, which surged by 44.1%, contributing 9.5 percentage points to total mining sales growth.
  • Gold sales, which increased significantly by 471.5%, adding 17.9 percentage points.

However, some segments negatively impacted mining sales:

  • Iron ore sales, which contracted by 14.0%, subtracting 2.1 percentage points.
  • Manganese ore, which declined by 24.7%, also reducing sales by 2.3 percentage points.

The mining sector remains essential to South Africa’s economy, providing foreign exchange earnings and employment for approximately 434,000 people, according to StatsSA labour statistics for the second quarter of 2025. The sector grew by 3.7% from the first to the second quarter of 2025, based on recent GDP data. This quarterly growth is encouraging, given the sector’s continued importance for employment and foreign exchange.

Employment within the sector has marginally increased compared to the previous quarter, highlighting its ongoing significance. Nevertheless, several challenges remain, including concerns over exports to the US following new tariff measures introduced on 7 August, proposed export tariffs on manganese, and import tariffs on steel exports to the Eurozone. The sector also faces difficulties related to the loss of AGOA benefits in September and ongoing issues surrounding the new Mining Charter.

On the international front, geopolitical tensions between the US and China—marked by trade conflicts and tariff disputes—continue to disrupt global markets and restrict trade flows. Nonetheless, some positive developments have occurred, such as the temporary exemption of certain mining materials used in steelmaking from high US tariffs. This offers some relief for the sector, which is crucial to South Africa’s economy in terms of employment, foreign exchange earnings, and overall growth.

Back to News

More Coverage

Manufacturing Production

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.

Reviving South Africa’s Economy

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.

Gold and Foreign Exchange

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.

Private Sector Credit Extension (PSCE)

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.

Internation Trade and Trade Balance

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.
0:00
0:00