Mining production slides 4% as gold and PGM sales soar

South Africa's mining production fell 4% year-on-year in June 2026, extending the sector's weakness after a 5.1% decline in May, according to the latest Statistics South Africa data released on Thursday.

Platinum group metals were the main drag on output, with production down 8.4%, shaving 2.4 percentage points off total mining growth. Coal production fell 6.6%, accounting for 1.7 percentage points of the decline, while iron ore dropped 10.2%, contributing a further 1.5 percentage points.

These declines were partly offset by stronger performances elsewhere. Manganese ore, chromium ore and gold production rose 13.3%, 8.6% and 6.2% respectively, with manganese ore contributing 0.9 percentage points to overall mining growth, and chromium ore and gold each adding 0.5 percentage points.

There was, however, a modest improvement on a monthly basis. Seasonally adjusted mining production increased 0.3% in June compared with May, following a sharp 5.2% contraction in May and a 3% increase in April.

For the second quarter as a whole, mining production came in 2.7% lower than the first quarter, with PGMs the largest contributor to the decline, falling 6.4% over the quarter.

Despite the weaker production figures, mineral sales at current prices jumped 27.2% year-on-year in June, driven largely by a 125.7% surge in gold sales, a 49% increase in chromium ore sales and a 27% rise in PGM sales. Seasonally adjusted mineral sales also rose 2.7% month-on-month in June.

SOURCE LINK: Miningmx