South Africa’s mining industry lost momentum in August, with output slipping 1.2% month-on month-and 0.2% year-on-year. This is according to the latest analysis by the Minerals Council South Africa following the release of mining data by Stats SA this week. The council, which represents South Africa’s biggest mining companies, said weak production in key commodities such as gold, chrome, manganese, and platinum group metals (PGMs) had dragged the sector down.

PGM production fell 3.0% year-on-year, while gold fell 3.6%, even as prices for the metal soared 36.4% in the past year to an average of $3 387 per ounce. On the upside, iron ore production grew by 2.2% year-on-year, diamonds were up by 29.5%, and coal by 4.1%.

Total mineral sales edged marginally higher to R73.6 billion in August from R73.5 billion in July, bringing year-to-date sales to R534 billion, up slightly from R527 billion in the same period of 2024.

The Minerals Council warned that the industry’s competitiveness remains crippled by rising power costs and unreliable supply. Electricity tariffs have jumped 937% since 2007 compared with a 155% rise in consumer prices.

The council also criticised a plan by the African National Congress to impose a 25% export tax on chrome ore, arguing it would damage both mining and smelting operations without addressing underlying issues.

It said the sector’s recovery depends on stable energy supply, policy certainty, and infrastructure reform, without which South Africa’s mineral wealth risks becoming a stranded asset.