South Africa's mining production decreased by 2.8% year-on-year in March, with platinum group metals (PGMs) and gold having been the largest negative contributors and iron-ore the largest positive contributor.

PGM production decreased by 9.9% and gold by 11.1%, while iron-ore output increased by 7.5% year-on-year, Statistics South Africa (Stats SA) has revealed.

Meanwhile, seasonally adjusted mining production increased by 3.5% month-on-month in March. This followed month-on-month changes of -4.1% in February and 0.2% in January.

Seasonally adjusted mining production for the first quarter of this year, however, decreased by 4.5%, compared with the fourth quarter of 2024. PGMs was again the biggest contributor to the decrease in production, but was offset to some extent by iron-ore, which made the largest positive contribution.

Stats SA further reported that mineral sales had increased by 1.6% year-on-year in March, with gold, iron-ore and coal having made the largest positive contributions and PGMs the largest negative contribution.

Seasonally adjusted mineral sales at current prices also increased by 0.5% month-on-month in March. This followed month-on-month changes of -9.6% in February and 1.4% in January.

Seasonally adjusted mineral sales at current prices, however, decreased by 10.1% in the first quarter of of the year compared with the fourth quarter of 2024.

Minerals Council South Africa senior economist Bongani Motsa comments that gold demand is likely to remain steady going forward, which should benefit South Africa's gold miners.

"Gold is a barometer for global events. It has diverse applications, from jewellery to industrial applications to a safe-haven investment instrument. These characteristics make gold a desirable metal whose demand seems to stand the test of time," he notes.

Further, he points out that while PGM production had contracted in February, export volumes and earnings were higher than in the pre-Covid period of 2019.

"As for chrome and manganese, the short- to medium-term outlook is positive, especially with the US and China having agreed to, at least temporary, significantly lower import tariffs from the average 145% to 30%.

"While this is still high, if they remain in place at current levels, relative to the initial reciprocal tariffs announced in April, it will soften the blow on Chinese exports to the US. Relatively speaking, this is positive news for Chinese demand for mineral ores from the rest of the world, including South Africa," he says.