South Africa's mining sector decreased by 3.5% in June

Gold production decreased by 12.6%, PGMs by 5.8% and coal by 3.3%. Other metallic minerals decreased by 21.3%.

Sources attribute the sharp decrease in gold production to a number of factors, including labor strikes at mines, energy supply disruptions and weak market conditions. South Africa has long been one of the world's leading gold producing countries, but in recent years its production levels have dropped behind those of its global competitors. Similarly, decreases in PGMs and coal production have been attributed to fluctuations in global demand and local challenges.

Seasonally adjusted data showed that mining output in June 2024 was 1.6% lower than the previous month. This suggests that the sector remains under pressure in the short term. Moreover, in the second quarter of 2024, mining output decreased by 0.9% compared to the first quarter. Iron ore and coal had the biggest negative impact on this decrease with decreases of 12.1% and 2.6%, respectively, while PGMs contributed positively to the sector with an increase of 3.6%.