South Africa’s Mining Production Declines in May Despite Strong Mineral Sales
South Africa’s mining sector recorded weaker performance in May, with production declining after posting two consecutive months of growth.
According to Statistics South Africa (Stats SA), mining production fell by 5.4% year-on-year in May, reversing the 8% increase recorded in April.
The decline was largely driven by lower output from iron ore, coal and platinum group metals (PGMs), which together accounted for most of the contraction in overall mining production.
On a seasonally adjusted basis, mining output decreased by 5.2% compared with April. Production over the three months to May also fell by 1.7% when measured against the previous three-month period.
Despite the drop in production, mineral sales remained resilient, increasing by 13.9% compared with May last year.
The growth in sales was supported by a 70.5% increase in platinum group metals sales, as well as higher sales of gold and coal. However, weaker iron ore sales partially offset those gains.
The latest figures suggest that while favourable demand and commodity prices continue to support mining revenues, production constraints remain a challenge for one of South Africa’s most important export industries.