SA’s mining production grew 4.7% year on year in September, a sharp rise from the previous month’s 0.3% increase, which was driven by an uptick in platinum group metals (PGM) and iron ore output.
The biggest contributor was a 6.7% increase in PGM output compared to the same period last year — followed by a 10% increase in iron ore production.
Production of manganese ore was also up 13.5% from the previous comparable period while chromium was up 17.3% and diamond production increased by a striking 35.4%. On a seasonally adjusted basis, mining output was up 3.8% in September, holding strong after it increased by 3.3% the prior month.
SA’s gold output, however, declined for the eleventh month in a row, down 3.7% from September last year — representing a 0.5 percentage point negative contribution to overall mining production.
Amid the gold sector’s steady decline, SA’s major gold miners all reported output that was down year on year in the quarter to end-September. Gold Fields reported a 6% decline in output and Sibanye-Stillwater a 9% decline, while Harmony Gold’s SA underground operations reported production down 10%.
Despite reporting its highest quarterly gold output of 2024 in the period, AngloGold Ashanti’s gold production was also down in the third quarter due to lower recovered grades.
“Global manufacturing conditions are still subdued, weighing on the demand for certain commodities,” Investec chief economist Annabel Bishop said.
“Domestically, the energy- intensive mining sector has benefited from an improvement in electricity supply over the past few months; however, it continues to face a number of other structural challenges, including fragile water supply and infrastructure and logistical constraints.”
According to Stats SA data, seasonally adjusted real electricity generation rose 8.5% year on year in September, having increased steadily through the third quarter — while Eskom’s energy availability factor exceeded 60% for the sixth consecutive month in October.
However, despite improved availability, the cost of electricity remains a driving component of miners’ input costs, with the price of power soaring by 10.6% year on year in September.
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