South Africa: Mixed Bag – SA’s January Mining Output Slumps, but Manufacturing Grows

The first big data bite of the industrial arms of…

The first big data bite of the industrial arms of South Africa’s economy for 2024 showed a melange, with mining production falling in January while manufacturing output gained ground.

South Africa’s mining sector got off to a faltering start for 2024, with production falling 3.3% year-on-year in January and 0.8% on a monthly basis.

The diamond sector remained in the rough, with output plunging over 41% on a year-on-year basis.

In a commentary earlier this week, Oxford Economics Africa noted that the diamond trade has been under pressure but looked set for a tentative rebound.

“Following a rough year for southern African diamond exports, marred by a global supply glut and the uncertainty over stricter bans on the trade of diamonds of Russian origin, the worst of the diamond price slump seems to be over. Southern African producers are still likely to either maintain or slightly cut diamond production amid the phased implementation of broader sanctions and a tentative recovery in global diamond demand,” it said.

Gold production fell, dropping 12.7% year-on-year. But red-hot prices which have been in record territory this year were reflected in gold sales, which soared over 113% on an annual basis in January despite the fall in output.

Platinum group metals (PGM) sales slumped 25.3% over the same period, a reflection of the sector’s unfolding price dive.

Meanwhile, manufacturing output in January increased…

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