By: Creamer media

The largest negative contributors were platinum group metals (PGMs) (-23.9% and contributing -5.8 percentage points); iron-ore (-10.5% and contributing -1.9 percentage points); gold (-7.6% and contributing -1 percentage point); and coal (-4.3% and contributing -1 percentage point).

Seasonally adjusted mining production decreased by 4.4% month-on-month in February.

This followed month-on-month changes of 0% in January and -4.2% in December 2024.

Seasonally adjusted mining production decreased by 6.7% in the three months ended February, compared with the previous three months.

The largest negative contributors were PGMs (-13.8% and contributing -4.3 percentage points); iron-ore (-8.8% and contributing -1.2 percentage points); and chromium ore (-10.5% and contributing -0.6 of a percentage point). 

SALES

Mineral sales at current prices decreased by 12.9% year-on-year in February.

The largest negative contributors were iron-ore (-29.5% and contributing -4.9 percentage points); gold (-32.7% and contributing -3.5 percentage points); PGMs (-12.2% and contributing -2.5 percentage points); and chromium ore (-23.2% and contributing -2.1 percentage points).

The largest positive contributor was coal (5.3% and contributing 1.4 percentage points).

Seasonally adjusted mineral sales at current prices decreased by 10.4% month-on-month in February.

This followed month-on-month changes of 1.3% in January and -10.2% in December 2024.

Seasonally adjusted mineral sales at current prices decreased by 8.8% in the three months ended February compared with the previous three months.

Commenting on the figures, industry body Minerals Council South Africa says that PGMs production is being aligned to an uncertain demand environment that has kept prices relatively depressed.

It adds that to a mixed degree, rand prices of platinum, palladium and rhodium have increased so far in this year, despite the concern about vehicle demand in the US amid likely tariff-induced vehicle price increase.

Ongoing logistical challenges continue to constrain production in the iron-ore sectors, the council points out.

Although the production data for March will only be released in May, the figures for January and February suggest a notable quarterly decline for mining production in the first quarter of the year, the council posits, adding that the sector will therefore likely detract meaningfully from the period’s real GDP.

“The poor start to the year for mining production, as well as the ongoing downgrades to the global real GDP growth outlook in an environment of significant uncertainty about tariffs and global trade, emphasises the need for a business-friendly, lower-cost operating environment for mining in South Africa,” it emphasises.