
The mining sector in South Africa continues suffer at the hands of decreasing global demand for mineral; the month of June was a mixed motion one, while production improved, sales dropped.
Having escaped the cruel jaws of load-shedding that affected production negatively, the mining sector’s output performance has improved drastically. The sector, dumbed a sunset industry, is showing resilience when it comes to production; however, as the world is shifting towards green economy, this affects the sale of minerals, in particular coal.
According to Stats SA, mining production increased by 2,4% year-on-year in June 2025. This is impressive given the challenges the industry is faced with. According the Mining Production and Sales report for June 2025, the largest positive contributors were:
· PGMs (3,0% and contributing 1,0 percentage point);
· Coal (3,7% and contributing 0,8 of a percentage point); and
· Chromium ore (9,0% and contributing 0,5 of a percentage point)
Seasonally adjusted mining production increased by 0,2% in June 2025 compared with May 2025. This followed month-on-month changes of 3,9% in May 2025 and 0,0% in April 2025.
Seasonally adjusted mining production increased by 3,9% in the second quarter of 2025 compared with the first quarter of 2025. The largest positive contributors were:
· PGMs (9,0% and contributing 2,5 percentage points);
· Gold (4,7% and contributing 0,6 of a percentage point); and
· Chromium ore (8,5% and contributing 0,5 of a percentage point).
It is unfortunate that the production performance was not complemented by the sales of mineral. While production is on an upward trajectory, sales are spiralling down. According to Stats SA, mineral sales at current prices decreased by 14,4% year-on-year in June 2025.
The largest negative contributors were:
· Gold (-53,7% and contributing -13,6 percentage points);
· Manganese ore (-33,7% and contributing -2,7 percentage points); and
· Coal (-5,5% and contributing -1,2 percentage points).
The largest positive contributor was PGMs (23,5% and contributing 4,4 percentage points).
Seasonally adjusted mineral sales at current prices decreased by 6,6% in June 2025 compared with May 2025. This followed month-on-month changes of 4,7% in May 2025 and 7,1% in April 2025.
Seasonally adjusted mineral sales at current prices increased by 6,6% in the second quarter of 2025 compared with the first quarter of 2025.