By South Africa’s vital mining sector faced a severe downturn in August 2026, weighed down by sharp contractions in key commodities including platinum group metals (PGMs), coal, iron ore, and gold. According to the latest data released by Statistics South Africa, the industry experienced widespread losses across both production output and mineral sales.
Production Drops Sharply Year-on-Year
Total mining production decreased by 12,7% year-on-year in August 2026. The contraction was driven heavily by underperformance in major mineral sectors:
- PGMs plummeted by 22,5%, single-handedly stripping 6,1 percentage points from the overall index.
- Coal output fell by 11,7%, contributing -3,0 percentage points to the negative trajectory.
- Iron ore decreased by 16,2%, slicing off another 2,4 percentage points.
Short-term momentum also stalled significantly. On a month-on-month basis, seasonally adjusted mining production dropped by 5,4% in August 2026, deepening a downward trend that saw a 1,9% decline in July following a modest 0,4% rise in June.
Furthermore, looking at the broader three-month picture ending in August 2026, seasonally adjusted production contracted by 5,2% compared with the preceding three months, led by PGMs, iron ore, and diamonds.
Mineral Sales Suffer Steep Declines
The slump in output translated directly into lower revenue, with mineral sales at current prices plunging by 15,1% year-on-year in August 2026.
Gold sales proved to be the most dramatic drag on revenue, collapsing by 48,6% and alone accounting for -8,6 percentage points of the total sales drop. Additional negative pressure came from iron ore, which dropped 23,0% (contributing -2,4 percentage points), alongside PGMs and coal, which both fell by 7,5% and 7,8% respectively, each contributing -1,9 percentage points.
Sequential sales figures further underscored the sector’s current volatility. Seasonally adjusted mineral sales at current prices dropped 7,9% in August compared to July, extending a volatile streak that included a steep 13,7% drop in July and a 1,1% uptick in June. Over the three months leading to August 2026, seasonally adjusted sales plummeted by 13,3% compared to the previous three-month block.
As the year progresses into its final quarter, these consecutive contractions highlight mounting pressures on South Africa’s resource economy, raising concerns over revenue generation, export earnings, and broader macroeconomic stability.
