SA mining sector solid in 2025
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SA mining sector solid in 2025
In October SA’s mining production rose by 5.8% year-on-year, while sales earnings were up by R27 billion.
October indicators underscored the two-speed nature of South Africa’s mining sector.
While bulk ores like iron, manganese and chromium are thriving on strong global industrial demand and improved logistics, traditional pillars such as gold, coal, and diamonds continue to face structural and market headwinds.
According to Bongani Motsa, Acting Chief Economist at the Minerals Council South Africa, the mining sector’s resilience lies in leveraging the momentum of bulk commodities, but long-term sustainability will require addressing persistent constraints in energy minerals and precious stones.
“Overall, the production numbers indicate that the sector is still performing at below 2019 levels,” says Motsa.
A good run for bulk commodities
Iron ore, Platinum Group Metals (PGMs), chromium and manganese had a good run over the last few months.
“Robust demand from Asian steelmakers, particularly China, supported higher iron ore export volumes, driven by improved rail and port logistics that enabled producers to move larger shipments.
“The stabilisation in automotive demand for catalytic converters, especially in hybrid vehicles, boosted demand for PGMs. Operationally, ongoing investment in mechanised shafts in PGMs mining improved efficiency and filtered into the production increase.
“Chromium ore and manganese ore benefited from rising stainless steel production globally, which lifted demand for ferrochrome and ferromanganese inputs. Global steel production, especially from China, continues to face headwinds emanating from the country’s trade tensions with the US.”
New gold mine good news for South Africa
Declining ore grades at mature gold mines in South Africa continue to constrain gold production even as prices are at record highs. Investor demand for gold remained steady, but physical production lagged.
Motsa says that the opening of West Wits’ Qala gold mine, south of Johannesburg, the first in since 2009, is positive for the mining sector as well as the country. The mine (Qala Shallows) is also a low-cost production operation.
Image: West Wits Gold’s Qala gold project in Johannesburg when WhyAfrica visited the site earlier this year.
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SA mining sector solid in 2025