South African mining production soared by 9.7% year-on-year in February 2026. This was the highest since February 2024. The increase then was 12.4% year-on-year. Mining production grew by 7.3% year-on-year in the first two months of 2026.
Part of the reason why February 2026 growth was so high was due to base effects. That means the comparison is with a poor February 2025. In February 2025 mining production declined by 8.3% year-on-year.
Statistics South Africa said mining production grew by only 0.1% in 2025. This followed a 0.5% gain in 2024 and no change in 2023. Mining production has in fact fallen by 6.4% since 2019. The decline in mining production since 2019 is in large measure due to the extended period of poor performance of Transnet.
Transnet decline
Transnet is the logistics backbone of the South African mining industry as its rail and harbours are needed to get bulk mining products from mine to overseas customers.
Between 2019 and 2023, the volume of bulk exports, which are mostly mining products such as coal, chrome ore, iron ore and manganese ore, declined by 10.4%. It was only the low volume precious metals and diamonds that prevented mining production from matching the large decline in bulk export volumes.
Importance of mining
The Minerals Council South Africa in its Facts and Figures 2025 Pocketbook highlighted the importance of the mining industry for the South African economy. It employs 469 765 miners that generate R439.2 billion in revenue and provides the government with R31.0 billion in taxes.
The Minerals Council said that the competitiveness of the sector is constrained by rapidly increasing government administered prices such as electricity, rail and port charges.
The poor performance since 2019 is highlighted by the fact that only two out of 12 sectors are above their 2019 production levels. These two sectors are chrome ore and manganese ore. Both of these sectors send their ore to China, rather than have value added locally by the ferroalloy sector. The domestic ferroalloy sector has been unable to compete with Chinese smelters due to the high electricity price.
Bulk exports surge in the first quarter
It seems as if Transnet is getting its act together.
South African bulk exports grew by 11.8% year-on-year in March 2026 to 17.079 million tons (Mt). The first quarter increase was 13.4% to 48.491 Mt.
