South Africa’s mining production experienced its first decline in nine months during November 2025, primarily owing to logistical challenges that affected coal and iron ore operations, even as precious metals showed strength.
According to Stats South Africa, the country’s mining output decreased by 2.7 per cent year-on-year in November, falling short of market expectations following a revised 6.1 per cent increase in the previous month. On a seasonally adjusted basis, production dropped 5.9 per cent from October to November. This marked the first contraction since April of the prior year, with major downward pressures from coal, which fell nearly 8 per cent year-on-year, iron ore down 7.6 per cent, platinum group metals declining 2.8 per cent, and gold dropping 6 per cent. These figures contributed negatively to the overall sector performance, subtracting points from the headline number.
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Coal production faced significant strain from logistical issues and global market dynamics. Exxaro Resources, operator of the nation’s largest coal mine, highlighted in its recent update how US tariffs under President Donald Trump have exacerbated inflationary pressures and market volatility, leading to lower export prices at Richards Bay Coal Terminal. The company anticipates average prices of 89 US dollars per tonne for 2025, a drop from 105 dollars in 2024. Glencore’s local coal operations similarly noted infrastructure bottlenecks in their latest report. As reported by Trading Economics, global coal prices have remained subdued, with South African export prices at 83.48 US dollars per metric tonne in September 2025, reflecting a 6.22 per cent monthly decline and a 21.94 per cent year-on-year fall. This environment has compounded challenges for South African exporters, amid uneven demand and competition from major producers like Australia and Indonesia.
Iron ore miners also contended with depressed prices and volatility stemming from ongoing trade tensions between Washington and Beijing. China, accounting for about three-quarters of global seaborne iron ore demand, has influenced market conditions. South Africa’s iron ore output reduction subtracted 1.1 percentage points from the sector’s total. Anglo American’s Kumba Iron Ore reported a 2 per cent production decrease in its recent results, attributed to plant maintenance. Broader global iron ore exports fell 6 per cent month-on-month in November, with South Africa’s shipments rising 35 per cent monthly to 4.46 million tonnes but still down 11.3 per cent year-on-year, indicating persistent supply chain issues.
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Beyond logistics, input cost inflation continues to burden the industry, often overshadowed by favourable market conditions for gold and platinum group metals. Data from Minerals Council South Africa indicates electricity costs rose nearly 16 per cent year-on-year in November, continuing a pattern that has idled numerous smelters. Water costs increased by 11.6 per cent, while labour expenses grew by about 6 per cent over the same period. Overall mining input cost inflation eased to 2.7 per cent year-on-year, aided by lower petroleum prices, but the council warns that sustained high administrative and energy costs erode competitiveness. With the sector contributing significantly to the economy, these pressures highlight the need for infrastructure improvements and policy stability to sustain recovery amid a projected 1.2 per cent national growth for 2025.