A SURGE in platinum group metal and gold production lifted South African mining output into positive territory in the first quarter of 2026, said Business Day citing data released by Stats SA on Thursday.
Mining production expanded 0.6% quarter on quarter, reversing a 0.5% contraction in the fourth quarter of 2025. The sector accounts for roughly 6% of the country’s nominal GDP, making the rebound a positive signal for first-quarter economic growth, the newspaper said.
PGMs were the standout contributor, with output rising 8.5% and adding 2.3 percentage points to the overall figure. Gold production grew 8.2%, contributing a further 0.7 percentage points.
Both metals have benefited from sharply higher prices: gold gained around 65% in 2025 and a further 8% in the first quarter of 2026, supported by safe-haven demand amid geopolitical tension and US tariff uncertainty.
PGM prices more than doubled in 2025, rising over 130% as supply constraints and tariff-related demand shifts produced significant market deficits.
Iron ore and coal were drags on the headline number, contracting 6.6% and 3.4% respectively, keeping the overall growth figure well below the 2.7% recorded in the third quarter of 2025 and the near-4% expansion in the second quarter of the year.
Mining sector sales at current prices rose 6.6% in the first quarter of this year compared with the previous quarter. In March alone, sales were up 30%, with PGMs contributing 21 percentage points, gold 8.2 percentage points and chromium ore 2.9 percentage points.
Tax receipts from the mining industry, which climbed 29% in 2025, are expected to provide further support to the fiscus in the months ahead.
