South Africa’s mining industry experienced a setback in December, with production numbers
declining by 3.3% year-on-year, according to the latest data released by Statistics South
Africa on Thursday. Manganese ore, gold, and diamonds were cited as the largest negative
contributors to this downturn.

“Manganese ore (-6.8% and contributing -0.5 of a percentage point) and gold (-3.5% and
contributing -0.5 of a percentage point) were significant negative contributors,” stated
principal survey statistician Juan-Pierre Terblanche. However, iron ore provided a glimmer of
hope, emerging as a significant positive contributor with a 1.3% increase.

The seasonally adjusted mining production figures painted a similarly gloomy picture, with a
0.8% decrease in January 2024 compared to December 2023. “Seasonally adjusted mining
production decreased by 0.8% in January 2024 compared with December 2023. This
followed month-on-month changes of -4.6% in December 2023 and 2.2% in November
2023,” Terblanche explained.

Despite the production slump, mineral sales at current prices saw a 5.7% year-on-year
increase in January, buoyed by gold’s remarkable 113.3% contribution and iron ore’s 11.9%
contribution. Nonetheless, Platinum Group Metals (PGMs) and coal recorded significant
negative contributions of -25.3% and -13.6%, respectively.

As the mining sector grapples with these fluctuations, industry stakeholders will closely
monitor the situation, seeking to identify and address the underlying factors contributing to
the production decline.