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This page is dedicated to information and statistics regarding South Africa's mining industry. It will be updated on ad hoc basis as more and newer statistics become available.
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17 February 2020: Mining loses shine for the second year in a row
We take a look at a few highlights/low lights of South Africa's mining industry as published by Statistics South Africa
Exactly a week after delegates closed the 26th Investing in African Mining Indaba, Stats SA released data on the performance of the mining industry in 2019. The level of production was 1,3% lower in 2019 than 2018, which in turn was 2,1% lower than 2017. Despite a positive showing from both copper and manganese, a slump in gold and diamond production in 2019 dragged overall mining down. Iron ore, platinum group metals (PGMs) and chromium also disappointed
Exactly a week after delegates closed the 26th Investing in African Mining Indaba, Stats SA released data on the performance of the mining industry in 2019. The level of production was 1,3% lower in 2019 than 2018, which in turn was 2,1% lower than 2017. Despite a positive showing from both copper and manganese, a slump in gold and diamond production in 2019 dragged overall mining down. Iron ore, platinum group metals (PGMs) and chromium also disappointed
Production followed the usual seasonal pattern, as illustrated by the chart below. Mining activity tends to fall off in January and peak in June.
Gold records its sixth consecutive year of decline
It must be hard being a gold miner. Once the darling of South African mining, the precious metal has experienced a consistent decline in production over the last few decades. It is disconcerting to realise that the gold industry has experienced just two years of positive growth since 1994 (these being 2002 and 2013).
It must be hard being a gold miner. Once the darling of South African mining, the precious metal has experienced a consistent decline in production over the last few decades. It is disconcerting to realise that the gold industry has experienced just two years of positive growth since 1994 (these being 2002 and 2013).
12 August 2019: Mining sales for June 2019
In this update we take a look at the latest mining production and sales numbers as published by Statistics South Africa. We will focus on the sales values of the main mining commodities being mined in South Africa. Is coal still the biggest income earner of mining commodities? Or has coal, gold or iron ore caught up with South Africa's "black gold"? The summary below shows the sales values as recorded in June 2019 for the main commodity types.
Gold is only the 4th biggest selling commodity in South Africa right now, with coal, platinum group metals (PGMs) and Iron ore all bringing in more money than gold. Iron ore is having a stellar few months thanks to massive international price increases cause by the dam wall that broke in Brazil leading to Vale suspending production at one of the biggest iron ore mines in the world. This fueled worries about iron ore supplies and this lead to massive price increases. As we said before gold is in the sunset period of its lifetime in South Africa. And the above shows that it is becoming less and less important in the overall mining industry of South Africa.
- Coal: R 11 636 100 000 (26.02%)
- PGMs: R 11 481 900 000 (25.67%)
- Iron ore: R 6 172 800 000( 13.80%)
- Gold: R 5 871 400 000 (13.13%)
- Manganese ore: R 4 771 700 000 (10.67%)
- Chromium: R 1 954 900 000 (4.37%)
- Other metallic minerals: R 1 910 400 000 (4.27%)
- Nickel: R 521 000 000 (1.16%)
- Copper: R 401 100 000 (0.90%)
Gold is only the 4th biggest selling commodity in South Africa right now, with coal, platinum group metals (PGMs) and Iron ore all bringing in more money than gold. Iron ore is having a stellar few months thanks to massive international price increases cause by the dam wall that broke in Brazil leading to Vale suspending production at one of the biggest iron ore mines in the world. This fueled worries about iron ore supplies and this lead to massive price increases. As we said before gold is in the sunset period of its lifetime in South Africa. And the above shows that it is becoming less and less important in the overall mining industry of South Africa.
26 June 2019: Employment in gold mining shrinking in terms of total mining employment
Based on the formal sector employment numbers published by Statistics South Africa we take a look at the contribution of the gold mining industry in terms of overall employment in the mining and quarrying industry and how its relative importance has declined over the years, showing that the mining industry is South Africa is become less and less important.
The summary below shows the number of people formally employed in the gold mining and non-gold mining sector in the first quarter of every year since 2010. Non-gold mining sector employment numbers shown in brackets.
It is clear that the non-gold mining employees employed in the mining sector is far greater than that of the gold mining sector. In 2010 gold mining employees accounted for 33% of the total number of employees in the mining and quarrying sector in South Africa. For the first quarter of 2019 the gold mining industry accounts for 20.3% of the total number of employees in the mining sector. A sharp decline in the relative importance of the gold mining sector in South Africa. With it having lost 66 965 jobs since 2010, while the non-gold mining sector actually added 38 417 jobs over the same time period. As we said before the sun is setting on the gold mining era in South Africa.
The summary below shows the number of people formally employed in the gold mining and non-gold mining sector in the first quarter of every year since 2010. Non-gold mining sector employment numbers shown in brackets.
- Q1:2010: 159 494 (331 353)
- Q1:2011: 151 566 (359 867)
- Q1:2012: 142 542 (380 282)
- Q1:2013: 138 275 (376 535)
- Q1:2014: 118 392 (373 013)
- Q1:2015: 114 850 (374 938)
- Q1:2016: 115 673 (342 187)
- Q1:2017: 114 964 (348 867)
- Q1:2018: 101 727 (352 370)
- Q1:2019: 93 152 (365 432)
It is clear that the non-gold mining employees employed in the mining sector is far greater than that of the gold mining sector. In 2010 gold mining employees accounted for 33% of the total number of employees in the mining and quarrying sector in South Africa. For the first quarter of 2019 the gold mining industry accounts for 20.3% of the total number of employees in the mining sector. A sharp decline in the relative importance of the gold mining sector in South Africa. With it having lost 66 965 jobs since 2010, while the non-gold mining sector actually added 38 417 jobs over the same time period. As we said before the sun is setting on the gold mining era in South Africa.
10 June 2019: Mining and quarrying declines -10.8% in Q1:2019
The mining and quarrying industry declined by -10.8% quarter on quarter seasonally adjusted and annualised based on the latest GDP numbers released by Statistics South Africa (Stats SA) for Q1:2019. Decreases in production was recorded for Iron Ore and Coal (for Q1:2019 compared to Q4:2018). And we know coal mining is currently the biggest contributor to South Africa's mining and quarrying industry. The image below shows the quarter on quarter seasonally adjusted and annualised growth rates of South Africa's primary sector.
While the primary sector recorded sharp declines, with it declining -11.4% compared to overall GDP declines of -3.2%, the blessing for South Africa's GDP figures is the fact that these two industries are relatively small in South Africa's economy. The problem is they are both relatively large employers in the South African economy, especially when its relatively small size in terms of economic contribution is taken into account.
16 May 2019: Mining production declines in Q1:2019 compared to Q1:2018
The latest mining production numbers published by Statistics South Africa showed that mining production for the first quarter of 2019 declined by -3.4% when compared to the mining production of the first quarter of 2018. The image below (courtesy of Statistics South Africa) shows the mining production growth for Q1:2019 compared to Q1:2018 per mineral type.
The only real shining light in the mining production numbers for Q1:2019 was Copper, with its production being 10.6% higher than the previous year. Diamonds saw a massive decline of -35.4% in terms of production numbers compared to the previous year. The summary below shows the growth per mineral type for Q1:2019 compared to Q1:2018 sorted from highest to lowest:
- Copper: 10.6%
- Gold: 0.8%
- Coal: -0.7%
- Platinum Group Metals (PGM's ) : -1.1%
- Chromium: -3.8%
- Iron Ore: -5.3%
- Manganese: -9.4%
- Nickel: -10.0%
- Diamonds: -35.4%
18 March 2019: Mining production and sales numbers
The bar chart below takes a look at the year on year growth rates in both the volume of commodities mined as well as the sales values of these commodities for the month of January 2019. So are we mining more coal, gold, iron ore or platinum than what we did a year ago? And more importantly is the total value of sales of our commodities mined higher or lower than last year?
So lets start with coal, while the volume of coal mined during January 2019 is almost 6% lower than a year ago, the sales values are up almost 12%, indicative of rising prices fetched for coal. Perhaps ESKOM paying more? Or demand internationally is leading to more coal being exported to more lucrative off shore markets.
Iron ore showed a massive decline in terms of the volumes mined, but a very sharp increase in the sales values fetched. This is largely due to sharp increases in the international iron ore prices after one of the biggest Iron ore mines, which belongs to Vale in Brazil had to stop operations after one of their dam walls broke and caused massive damage, flooding and lead to the death of numerous people in Brazil. Government there ordered the halt of operations at the relevant which lead to supply shortages fears and saw the price of Iron ore sky rocket. A big benefactor of this is Kumba Iron Ore.
Those living and working in or at the platinum mines in the North West will be happy with the performance of PGM's. Volumes mined increased just over 20% while sales values were up almost 46% compared to last year January. So a very strong recovery in a mining sector that has been struggling for years on end now.
Lastly we take a look at Gold. Volumes of gold mined declined by -18.73% in January 2019 compared to January 2018. A little bit of good news for gold miners in SA is the fact that sales values were up 7.98%. But we maintain that the Gold mining industry in South Africa is currently in its sunset years and we do not see a bright future for the industry ahead in South Africa. Lack of a stable power grid, ever deeper and more dangerous mines, continued work interruptions due to strike action, illegal mining taking place inside mine shafts and a lower demand internationally, especially from younger generation Indian families who are breaking away from the traditional Gold buying for wedding parties etc. All of these factors have a negative impact on not only the gold prices internationally but also the viability of current gold mines in South Africa. At some point the break even cost to mine gold will be well above the international gold price, and gold mining firms will have to shut their doors.
Taking a look at the total sales values of the four commodities looked at in this article we saw the following sales numbers for these commodities in January 2019:
Coal sales where 40% higher than PGM sales in January 2019, 75% higher than Gold sales in Janaury 2019 and it was 268% higher than the sales achieved by Iron Ore miners in South Africa. Coal truly is South Africa's "Black Gold" and its taking the shine away from all of South Africa's other commodities and minerals. It truly is the king of the commodity roost in South Africa.
Iron ore showed a massive decline in terms of the volumes mined, but a very sharp increase in the sales values fetched. This is largely due to sharp increases in the international iron ore prices after one of the biggest Iron ore mines, which belongs to Vale in Brazil had to stop operations after one of their dam walls broke and caused massive damage, flooding and lead to the death of numerous people in Brazil. Government there ordered the halt of operations at the relevant which lead to supply shortages fears and saw the price of Iron ore sky rocket. A big benefactor of this is Kumba Iron Ore.
Those living and working in or at the platinum mines in the North West will be happy with the performance of PGM's. Volumes mined increased just over 20% while sales values were up almost 46% compared to last year January. So a very strong recovery in a mining sector that has been struggling for years on end now.
Lastly we take a look at Gold. Volumes of gold mined declined by -18.73% in January 2019 compared to January 2018. A little bit of good news for gold miners in SA is the fact that sales values were up 7.98%. But we maintain that the Gold mining industry in South Africa is currently in its sunset years and we do not see a bright future for the industry ahead in South Africa. Lack of a stable power grid, ever deeper and more dangerous mines, continued work interruptions due to strike action, illegal mining taking place inside mine shafts and a lower demand internationally, especially from younger generation Indian families who are breaking away from the traditional Gold buying for wedding parties etc. All of these factors have a negative impact on not only the gold prices internationally but also the viability of current gold mines in South Africa. At some point the break even cost to mine gold will be well above the international gold price, and gold mining firms will have to shut their doors.
Taking a look at the total sales values of the four commodities looked at in this article we saw the following sales numbers for these commodities in January 2019:
- Coal: R12 295 900 000
- PGMs : R8 723 200 000
- Gold: R7 015 200 000
- Iron ore: R4 579 600 000
Coal sales where 40% higher than PGM sales in January 2019, 75% higher than Gold sales in Janaury 2019 and it was 268% higher than the sales achieved by Iron Ore miners in South Africa. Coal truly is South Africa's "Black Gold" and its taking the shine away from all of South Africa's other commodities and minerals. It truly is the king of the commodity roost in South Africa.
10 January 2019: Employment in the gold mining industry
Once the pride and joy of South Africa, and the main driver behind one of the wealthiest cities in Africa, Johannesburg, the gold rush saw thousands upon thousands flock to South Africa and Johannesburg all looking for fame and fortune on the gold fields of the highveld. But sadly over the last number of years as gold lost its shine and importance as store of value for investors, the gold mining industry in South Africa has been on the decline. Not only are South African gold mines becoming to expensive to mine profitably (due to labour unions and their high wage demands, deep mines becoming unsafe to mine without heavy investments in underground safety, and a electricity source in ESKOM which is unreliable and expensive).
In an effort to save the gold mining companies and shore up their balance sheets, mining companies have had little choice but to get rid of some of their workforce. And this brings us to employment in the gold mining industry. The line graph below shows the number of employees in the gold mining industry per quarter from September 2009 all the way to September 2018. And its not a pretty picture.
In an effort to save the gold mining companies and shore up their balance sheets, mining companies have had little choice but to get rid of some of their workforce. And this brings us to employment in the gold mining industry. The line graph below shows the number of employees in the gold mining industry per quarter from September 2009 all the way to September 2018. And its not a pretty picture.
In September 2009, there were 160 117 people working in the gold mining industry. By September 2018 the number was sitting at 98 226. That's a decrease of 61 891 employees (or a decline of 38.7%) in the last 9 years. So roughly 6 876 people lose their jobs each year in the gold mining industry. That is 573 people being let go in the gold mining industry in South Africa every month.