By Lehlohonolo Lehana.
South Africa’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.
Statistics South Africa released the latest figures on Thursday, highlighting that platinum group metals and iron made the largest positive contributions to the rise.
PGMs increased by 6,7% and contributed 2,1 percentage points to the growth, while iron ore increased by 10,0% and contributed 1,3 percentage points.
Principal Survey Statistician Juan-Pierre Terblanche said coal and gold were the only sectors to show a decline.
“Coal decreased by -4,4% and gold decreased by -3,7%.
“Seasonally adjusted mining production increased by 3,8% in September 2024 compared with August 2024. This followed month-on-month changes of 3,3% in August 2024 and -1,1% in July 2024.
“Seasonally adjusted mining production increased by 1,0% in the third quarter of 2024 compared with the second quarter of 2024.
“The largest positive contributors were manganese ore (10,1% and contributing 0,7 of a percentage point); and chromium ore (7,3% and contributing 0,4 of a percentage point).”
Terblanche says mineral sales at current prices increased by 8% year-on-year in September 2024.
“Seasonally adjusted mineral sales at current prices increased by 16,4% in September 2024 compared with August 2024. This followed month-on-month changes of -21,4% in August 2024 and -1,7% in July 2024.
“Seasonally adjusted mineral sales at current prices decreased by 2,5% in the third quarter of 2024 compared with the second quarter of 2024,” he said.
Year-to-date (January to September), mining output has increased by 0.7%, a notable yet moderate improvement from the 0% growth in 2023, which was revised upwards from a previous estimate of a 0.2% contraction,” said FNB Senior Economist Thanda Sithole.
“While mining recovery benefits from easing energy constraints and gradually stabilising logistics, we anticipate a moderate pace of growth in the near term due to a challenging external demand environment.”
“Accelerating reforms in ports and rail infrastructure will be crucial for boosting productivity and profitability in the mining sector over the medium term.”