JOHANNESBURG (miningweekly.com) – The month of January marked a surprising resilience in South Africa’s mining sector, with overall production up 4.6% year-on-year despite severe flooding in Mpumalanga and Limpopo.

The January production increase was on top of a 2.8% output rise in December.

The increase in chromium was a standout at 37.3%, followed by the 12.5% increase in manganese production.

Platinum group metals (PGM) production increased by 10.8%, diamond production by 4.2% and gold production by 0.7%.

Diamond mining was supported by steady demand in luxury markets and investment in sustainable mining practices amid a slight recovery of the jewellery market.

“Although structurally gold production in South Africa is on the decline, high prices ensure that mines will do their best to optimise production,” Minerals Council South Africa acting chief economist Bongani Motsa commented in the release to Mining Weekly.

“The increase in PGMs production is mainly a base effect. Before May 2025 PGMs’ prices were subdued and production was low.”

The 0.7% decline in coal production was described as being linked to weak demand for thermal coal against the background of global energy transition policies, compounded by operational challenges and reduced exports.

Iron-ore’s 1.9% production fall is viewed as being linked to China’s 4% lower 2025 steel production.

Reduced demand for industrial minerals such as limestone and phosphate is the consequence of slower construction activity. This falls into the category of other non-metallic minerals, which experienced the sharpest decline of 21.7%.

In January mineral sales rose by 31.7% to R82-billion. The most significant positive contributor to overall mineral sales were PGMs, which rose by 122.4% to R26-billion.

The rise in chromium sales to R5.2-billion was the next highest percentage wise at 66%, followed by the 35.9% rise in gold sales to R19.7-billion and 11.2%-higher manganese ore sales worth R3.6-billion.

Sales earnings declines were experienced by iron-ore. Sales of iron-ore fell by 11.9% to R6.7-billion and sales of coal fell by 10.3% to R15.1-billion.

Commodity prices for precious metals also strengthened notably in January 2026, especially for rhodium.

Platinum prices soared by 154.8% to $2 414/oz, rhodium sales by 116.8% to $10 073/oz, palladium by 93.5% to $2 414/oz, and gold by 74.3% to $4 720/oz.

Coal prices declined by 12.5% to $88.4/t while iron-ore prices increased by 3.5% to $107.5/t.

While South Africa’s mining sector demonstrated resilience and capitalised on buoyant precious metal prices, the broader global outlook is clouded by geopolitical risks.

“The recent US-Israel attack on Iran has heightened fears of supply chain disruptions, energy price volatility, and financial market instability.

“These tensions amplify risks for the global economy, where commodity markets are already navigating structural transitions toward critical minerals.

“In this context, South Africa’s mining gains are both a testament to sectoral strength and a reminder of the fragility of global economic stability,” Motse added in a bottom line and looking ahead commentary.