South Africa’s mining production recorded a welcome improvement in September, rising by 1.2% year-on-year after experiencing a slight contraction in August. The latest data, released by Statistics South Africa (Stats SA) on Thursday, highlights a turnaround driven largely by platinum group metals (PGMs), gold, and coal—three of the country’s most influential mineral categories.
The September increase marks a positive shift for an industry that has faced numerous challenges in recent years, including energy constraints, fluctuating commodity prices, and global economic uncertainty. While the August contraction had raised concerns about sustained downward pressure, the September figures demonstrate resilience and the sector’s ongoing ability to rebound.
According to Stats SA principal survey statistician Juan-Pierre Terblanche, the September improvement in mining production reflects solid output across key commodities. Terblanche explained that PGMs were among the leading contributors to the rebound, supported by higher production volumes in both gold and coal. These sectors have been instrumental not only in bolstering monthly results but also in stabilising overall performance during the third quarter.
Mining Production Strengthens After August Dip
The seasonally adjusted data paints an even clearer picture of recovery. Mining production increased by 2.2% in September 2025 compared with August 2025. This comes after a month-on-month decline of -0.9% in August 2025 and a modest increase of 1.2% recorded in July 2025. The September improvement therefore indicates a renewed upward trend, suggesting that the industry may be moving into a more stable growth phase as the year progresses.
The strong influence of PGMs is particularly notable. As global demand for catalytic converters, green hydrogen technologies, and specialist industrial components continues to rise, PGMs remain among South Africa’s most strategically important exports. The September data reinforces their crucial role in supporting mining production, particularly at times when other mineral categories may be experiencing volatility.
Stats SA’s data shows that the positive momentum extends beyond September. Seasonally adjusted mining production increased by 2.5% in the third quarter of 2025 compared to the second quarter. This quarter-on-quarter improvement demonstrates that the sector is not only recovering month by month but also stabilising over longer reporting periods.
The largest positive contributors in the third quarter were again PGMs, manganese ore, and coal. PGMs grew by 6.7%, contributing 1.7 percentage points to the overall quarterly increase. Manganese ore, another mineral for which South Africa is a leading global supplier, grew by 6.8%, contributing 0.5 of a percentage point. Coal production increased by 1.0%, contributing 0.3 of a percentage point.
These figures highlight a diversified base of growth within the mining industry. While PGMs often dominate headlines, the improved performance of manganese ore and coal underscores the breadth of South Africa’s mineral economy. Stronger manganese output, for example, is linked to global steel demand, as the mineral is essential for steel production. Coal, despite global shifts toward renewable energy, continues to play a central role in South Africa’s electricity generation and export earnings.
The rise in mining production in both September and the third quarter of 2025 carries several implications for the broader economy. First, it signals potential stability in a sector that contributes significantly to GDP, export revenue, and employment. Mining remains one of South Africa’s economic anchors, and sustained improvements can boost business confidence and foreign investment.
Second, the data suggests that operational issues—such as load shedding and logistical constraints—may be easing or being better managed. Although challenges persist, the industry’s ability to increase production despite these pressures is a positive sign. Improvements in rail transport, port operations, and energy availability would further support this momentum.
Finally, the strong performance of PGMs raises the possibility of renewed interest in long-term mining projects, particularly those aligned with global shifts toward green technologies. As countries continue to invest in hydrogen production, electric vehicles, and emissions control systems, the demand for South Africa’s PGMs is expected to remain robust.
With mining production showing consistent growth across multiple reporting periods, industry analysts will be watching closely to see whether this momentum carries through to the final quarter of 2025. Much will depend on global commodity prices, the stability of South Africa’s energy supply, and the efficiency of logistics networks.
If current conditions hold, the mining sector could end the year on a stronger footing than initially anticipated. For now, the September increase and third-quarter improvements offer an encouraging indication that South Africa’s mining industry is navigating its challenges with renewed resilience and steady growth potential.
Source- EWN
