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Frederick Mitchell, Chief Economist | Aluma Capital (Pty) Ltd
Frederick Mitchell
April 16, 2025

Mining Production and Sales

February 2025

In February 2025, mining activities in South Africa saw a significant decline of 9.6%, following a revised decrease of 1.5% in January 2025.

The key factors behind this downturn include:

  • Platinum Group Metals (PGMs): down 23.9%, contributing a decline of 5.8 percentage points.
  • Coal: decreased by 4.3%, accounting for a further 1.0 percentage point loss.
  • Iron Ore: contracted by 10.5%, adding 1.9 percentage points to the overall drop.
  • Gold: saw a decrease of 7.6%, contributing another 1.0 percentage point to the decline.

However, manganese ore production rose by 8.6% in February 2025, partially offsetting the overall decline.

Mining sales also fell by 12.9% in February, with the main contributors to this contraction being:

  • Platinum Group Metals (PGMs): down 12.2%, resulting in a 2.5 percentage point decline.
  • Chromium: decreased by 23.2%, contributing 2.1 percentage points to the overall drop.
  • Iron Ore: contracted by 29.5%, adding 4.9 percentage points to the decrease.
  • Gold: experienced a decrease of 32.7%, contributing an additional 3.5 percentage points to the overall decline.

On a brighter note, coal sales increased by 5.3%, providing 1.4 percentage points to offset losses in other categories.

The mining sector is vital to South Africa’s economy, generating foreign exchange and directly employing approximately 484,000 people, according to StatsSA. However, concerns about the potential closure of ArcelorMittal (AMSA) pose significant challenges for iron ore production and sales in the country. The government is actively seeking to prevent AMSA from exiting the market due to rising production costs and infrastructure bottlenecks, particularly in ports and railways. Timely action is essential to ensure AMSA’s continued presence in the mining and steel industry.

On the global front, ongoing tensions between the US and China, coupled with their trade conflict, have unsettled markets and led to a reduction in international trade. This trend is reflected in production and sales volumes worldwide. The coming months will reveal whether we can avoid a global and domestic recession.

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