Mining Production and Mineral Sales for November

Mining activities in South Africa has seen a backwards trend that is now resulting in regular mining production decreased appearing on the statistics.

The latest numbers for November 2024 that were released by Stats SA today, revealed a -0,9% year-on-year overall decrease for November 2024.

Production Decrease Concern in Key Sectors

By Category, the largest negative contributors were:

·        Gold (-11,5% and contributing -1,5 percentage points);

·        Iron ore (-3,8% and contributing -0,5 of a percentage point);

·        Coal (-1,6% and contributing -0,3 of a percentage point); and

·        Diamonds (-11,4% and contributing -0,2 of a percentage point).

On the positive side of the production spectrum, PGM production grew by 4,0% and contributing 1,3 percentage points, with chromium ore up nicely by 15,6% and contributing 0,7 of a percentage point, that were the largest positive contributors.

Seasonally Adjusted Numbers:

A decrease of 0,2% was recorded in the seasonally adjusted mining production numbers, in November 2024 compared with October 2024. This followed month-on-month changes of -2,8% in October 2024 and 4,2% in September 2024.

Seasonally adjusted mining production increased by 4,0% in the three months ended November 2024 compared with the previous three months. The largest positive contributors were:

·        PGMs up 7,2% and contributing 2,2 percentage points;

·        Iron ore up 9,4% and contributing 1,3 percentage points

·        Coal production up 2,7% and contributing 0,6 of a percentage point.

Mineral sales: results However Positive for November 2024

Fortunately for the mineral mining sector the price significant increases in minerals, and particularly gold that has seen a 34,93% growth in price in the past year, resulted in sales value growth.

November saw an increase in sales value of minerals, at current prices of 8,1%, despite a reduction in production volume seen in the same month.

Total sales value increased by 8,1% year-on-year in November 2024.

The largest positive contributors were:

·        Gold with a sales value increase of a significant 93,4% and contributing 11,4 percentage points to overall value

·        Coal had an increase of 8,5% in sales value

·        PGMs had a 4,3% increase

The largest negative contributor was iron ore that worryingly saw a -28,2% decrease in sales