According to MiningWeekly, in March, South Africa’s mining production fell by 2.8% year-on-year, primarily due to lower output of platinum group metals and gold.

Data from Statistics South Africa (Stats SA) show that platinum group metal production fell by 9.9%, and gold production declined by 11.1%. However, iron ore production increased by 7.5% year-on-year.

Seasonally adjusted mining production in March rose 3.5% month-on-month, compared to a decline of 4.1% in February and an increase of 0.2% in January.

After seasonal adjustment, mining production in the first quarter fell by 4.5% compared to the previous quarter. Platinum-group metals were the primary driver of this decline, though the increase in iron ore production partially offset the reduction.

At current prices, seasonally adjusted sales of mineral products rose 0.5% month-on-month, compared to a 9.6% decline in February and a 1.4% increase in January.

Meanwhile, seasonally adjusted mineral product sales fell by 10.1% quarter-on-quarter in the first quarter.

Bongani Motsa, a senior analyst at the Minerals Council South Africa, said that future gold demand is expected to remain stable, which should benefit South African gold companies.

“Gold is a barometer of global events. It has a wide range of uses, from jewelry and industrial applications to serving as a safe-haven investment tool. These characteristics make gold the ideal metal—time-tested and enduring,” he said.

In addition, he pointed out that although production of platinum-group metals contracted in February, export volumes and export revenues remained higher than pre-pandemic levels in 2019.

He believes that the short- to medium-term outlook for chromium-manganese is promising, especially as the trade war eases.