Mining production in May 2024 showed no growth compared to May 2023. The sector remained flat, with mixed performance among different minerals.
Key Contributors
- Coal: Production increased by 7.0%, adding 1.6 percentage points to overall output.
- Chromium Ore: Production surged by 17.1%, contributing 0.7 percentage points.
- Gold: Production fell by 9.0%, dragging down the total by 1.3 percentage points.
- PGMs: Production decreased by 4.1%, reducing the total by 1.1 percentage points.
Monthly Changes
Seasonally adjusted mining production saw a slight decrease in May 2024. Compared to April 2024, production was down by 0.6%. This follows a 0.8% increase in April and a 4.1% decline in March.
| Month | Change (%) |
|---|---|
| March 2024 | -4.1 |
| April 2024 | +0.8 |
| May 2024 | -0.6 |
Quarterly Trends
In the three months ending May 2024, seasonally adjusted mining production fell by 0.8% compared to the previous three months. The biggest negative impacts came from coal and iron ore.
- Coal: Decreased by 3.2%, contributing -0.8 percentage points.
- Iron Ore: Dropped by 5.5%, contributing -0.7 percentage points.
Mineral Sales Performance
Year-on-Year Decline
Mineral sales at current prices plummeted by 19.1% in May 2024 compared to May 2023. This significant drop highlights the challenges faced by the sector.
Major Negative Contributors
- Gold: Sales plunged by 69.2%, reducing overall sales by 13.7 percentage points.
- PGMs: Sales fell by 22.9%, contributing -6.4 percentage points.
- Manganese Ore: Sales decreased by 14.2%, impacting the total by -0.9 percentage points.
Positive Contributors
Despite the overall decline, some minerals showed positive sales performance.
- Coal: Sales rose by 10.6%, adding 2.1 percentage points.
- Chromium Ore: Sales increased by 25.4%, contributing 1.4 percentage points.
Monthly Sales Changes
Seasonally adjusted mineral sales at current prices dropped by 8.0% in May 2024 compared to April 2024. This follows a sharp increase of 13.4% in April and a significant decline of 13.6% in March.
| Month | Change (%) |
|---|---|
| March 2024 | -13.6 |
| April 2024 | +13.4 |
| May 2024 | -8.0 |
Quarterly Sales Trends
Over the three months ending May 2024, seasonally adjusted mineral sales decreased by 13.9% compared to the previous three months. This decline reflects the ongoing challenges in the mining sector.
Coal and Chromium Shine Amidst Challenges
Despite the overall downturn, coal and chromium ore stood out with positive contributions in both production and sales. These minerals provided some relief to the otherwise struggling sector.
Industry Outlook
The flat production and sharp decline in sales highlight the volatility in the mining sector. Analysts suggest that the sector needs to address both production efficiency and market conditions to stabilize and improve performance.
Conclusion
The mining sector’s performance in May 2024 underscores the challenges and opportunities within the industry. While some minerals like coal and chromium ore show positive trends, the overall picture remains mixed. Addressing the negative impacts on gold and PGMs will be crucial for future stability and growth.