Persistent decline in mining production signals trouble for South Africa's economy

THE South African mining sector, characterised by its energy-intensive nature, is facing numerous challenges that threaten its export potential and overall viability.

- SIPHELELE DLUDLA

Data from Statistics South Africa (Stats SA) on Thursday showed that mining production shrank by 2.8% year-on-year in March following a 9.7% plunge in February.

The latest reading pointed to the fifth consecutive month of annual decline in the sector, although much softer than in February, it will drag economic growth in the first quarter of 2025 as the March mining release concluded the results for the first three months of the calendar year.

Jean-Pierre Terblanche, principal service statistician at Stats SA, said four out of 12 mining divisions recorded annual declines in March, but platinum group metals (PGM) and gold were the largest negative contributors.

“Seasonally-adjusted mining production declined by 4.5% in the first quarter of 2025 compared with the fourth quarter of 2024,” Terblanche said.