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
December 10, 2024

Mining Production and Sales

September 2024

Mining South Africa rose by 1.4% in October 2024, building on a solid 4.9% growth from September. Key contributors included significant increases in iron ore, platinum group metals, and diamonds. Mineral sales also increased by 1.6%. Despite some challenges, the sector is rebounding strongly, supporting over 484,000 jobs. With improved economic confidence and a focus on stabilising production, the future looks promising for South Africa’s mining industry.

Mining in South Africa increased by 1.4% in October 2024, building on a notable 4.9% growth in September. Key contributors to this growth included:

  • Iron Ore: Up 10.0%, adding 1.3 percentage points
  • Platinum Group Metals (PGMs): Up 3.3%, contributing 2.1 percentage points
  • Coal: Up 1.8%, contributing 0.4 percentage points
  • Diamonds: Up 27.9%, adding 0.5 percentage points
  • Chromium Ore: Up 14.0%, contributing another 0.7 percentage points

However, iron ore production dropped by 6.4%, reducing growth by 0.8 percentage points, and gold production fell by 3.4%, leading to an overall decline of 0.5 percentage points in mining production.
In October 2024, mineral sales rose by 1.6%, following a 7.9% increase in September. Significant sales increases included:

  • Other Metallic Minerals: Surged 28.9%, boosting performance by 0.6 percentage points
  • Chromium Ore: Increased by 7.4%, adding 0.5 percentage points
  • Coal: Up 10.3%, contributing 2.5 percentage points
  • Gold: Increased by 4.1%, contributing another 0.9 percentage points
  • Other Non-Metallic Minerals: Grew by 11.2%, boosting performance by 0.4 percentage points

Despite these gains, iron sales experienced a significant decline of 30.0%, reducing the total mineral sales value by 3.1 percentage points in October 2024.

The mining sector remains essential to South Africa’s economy, driving foreign exchange and directly employing approximately 484,000 people, according to StatsSA. After facing significant challenges from late 2022 to 2023 due to electricity supply issues and infrastructure bottlenecks, especially at ports, production volumes began to recover in early 2024 and continued to show improvement in October data following a slump from April to August.

The sector appears to be rebounding from a low base, supported by improved economic confidence in South Africa, as indicated by soft data indices over recent months. Looking ahead, mining production is expected to stabilize and grow moderately, driven by increased confidence in the sector. However, mining firms remain cautiously optimistic about ensuring consistent electricity supply and resolving infrastructure challenges in the medium term, as promised by the Government of National Unity.

Back to News

More Coverage

The Fuel Shock Dilemma: Why the SARB’s Inflation Medicine May Hurt a Fragile Economy

For South African businesses and households already managing a tight financial squeeze, the South African Reserve Bank’s (SARB) recent decision to hike the repo rate to 7.0% felt less like economic medicine and more like a handbrake. While central banks traditionally raise interest rates to cool down an overheating economy, South Africa’s current reality is vastly different. Our recent inflation spike isn’t driven by a wild shopping spree, but by global supply shocks and an imported energy crisis. This begs the crucial question: is the SARB using the wrong tool for the job, and at what cost to our fragile economic growth?

The Core Dilemma: Demand vs. Supply and Interest Rates

The case for holding interest rates is strong, as South Africa’s current inflation is being driven by global supply-side pressures like fuel prices, not excessive local spending. Raising rates now would place additional strain on already struggling consumers and businesses without addressing the real cause of inflation. With the Rand strengthening, oil prices stabilising, and diesel costs expected to decline, natural inflation relief is already emerging. Since inflation remains within the SARB’s target range, increasing borrowing costs could unnecessarily slow economic growth and job creation.

A view on Demand in the Economy: Retail Sales performance – March 2026 Data

Amid a turbulent economic backdrop, South Africa’s retail sales surged by an unexpected 2.6% in March 2026, outpacing forecasts and signalling a fragile yet persistent recovery in the consumer market. While interest rate cuts have bolstered household spending, challenges such as rising inflation, potential interest rate hikes, and geopolitical tensions loom large. Despite these hurdles, sectors like “other retailers” and general dealers have notably contributed to this growth spurt, raising questions about the sustainability of this recovery. With business and consumer confidence indices displaying mixed signals, the future of South Africa’s retail strength hinges on international relations, fuel costs, and policy decisions. Explore the dynamics and implications of these developments in our detailed report.

Consumer Inflation Rate – 2026

In an insightful analysis of South Africa’s economic landscape in April 2026, the report delves into the notable 4.0% year-on-year increase in the Consumer Price Index, accentuated by surging costs in housing, utilities, transport, and financial services. Amid rising inflationary pressures fuelled by global uncertainties, including the Middle East conflict and climbing oil prices, the South African Reserve Bank faces critical decisions on interest rates to balance inflation and economic growth. As households grapple with diminished purchasing power, the precarity of reliance on short-term credit looms large, while international factors such as US-imposed tariffs and potential BRICS trade tensions threaten market stability. The report provides a comprehensive look at the delicate dance South Africa must perform to maintain price stability and safeguard the Rand amidst a challenging global backdrop.

The SARB’s High-Stakes Tightrope: Balancing an Inflation Breach Against a Jobless Crisis

Next week’s SARB decision could define South Africa’s economic trajectory: facing an external oil shock and runaway electricity tariffs that threaten to push April inflation past the central bank’s 4.0% ceiling, policymakers must weigh a technical inflation breach against a staggering surge in unemployment and collapsing investment, a choice between credibility and survival. With joblessness spiking and GDP growth stagnant, aggressive rate hikes would risk choking off the private investment the country urgently needs, while inaction could dent the new inflation-targeting framework. Read the full report for a detailed breakdown of the shocks driving this dilemma, the likely “hold” outcome from the May 28 MPC meeting, and what it means for businesses, households, and markets.