Mining Crisis: 5 Reasons South Africa’s Production Fell 10.7% in September
South Africa’s mining production fell 10.7% in September 2026. Discover why iron ore, coal, platinum and diamond output declined.
South Africa’s mining industry has recorded another worrying decline after mining production dropped by 10.7% year-on-year in September 2026. The latest figures from Statistics South Africa (Stats SA) show that the country’s mining sector continues to face pressure, with iron ore, coal, platinum group metals and diamonds among the biggest contributors to the decline.
The figures are particularly concerning because mining remains an important part of the South African economy. The industry supports thousands of jobs, generates export revenue and supplies raw materials to manufacturers around the world. Although production improved slightly compared with August, the broader quarterly figures reveal that the industry is still struggling. Here are five important facts behind South Africa’s latest mining production decline.
1. South Africa mining production fell by 10.7%
Stats SA published its September 2026 mining production and sales report on 12 November. The report confirmed that mining production declined by 10.7% compared with September 2025. This represented the fifth consecutive month of annual contraction, following a revised decline of 11.7% in August.The figures show that the weakness is not limited to one mineral. Several important mining categories recorded lower production during September.
However, there was a small improvement on a monthly basis. Seasonally adjusted mining production increased by 2.8% between August and September. That improvement followed declines of 4.8% in August and 2.1% in July. The difference between the annual and monthly figures is important. The September recovery suggests that production improved from the previous month, but the industry still produced significantly less than it did during the same period last year. Statistics South Africa+1
2. Iron ore and coal were major contributors to the decline
Iron ore was one of the biggest contributors to September’s disappointing figures. Stats SA recorded a 23.7% decline in iron ore production, which reduced the overall mining production figure by 3.4 percentage points. Coal production also struggled, falling by 13.4% and contributing another 3.3 percentage points to the overall decline. These figures matter because iron ore and coal are important commodities for South Africa’s mining and export industries. Iron ore producers depend heavily on efficient rail and port infrastructure to transport minerals to international customers.
Coal also plays a significant role in the country’s energy and export markets. When production falls, mining companies can face lower output, weaker revenue opportunities and pressure to manage operating expenses. The latest figures therefore raise concerns about the challenges affecting some of South Africa’s most important mining operations. Statistics South Africa+1
3. Platinum group metals and diamonds also recorded major declines
South Africa’s platinum group metals sector also contributed to the mining downturn. Stats SA reported that PGM production declined by 9.9% year-on-year in September. The category contributed 2.9 percentage points to the overall decline in mining production. Diamonds recorded an even sharper percentage drop.
Diamond production plunged by 63.1%, contributing 1.1 percentage points to the decline. These results highlight the uneven performance across the country’s mineral industries. South Africa remains an important producer of platinum group metals, which are used in vehicle emissions-control systems, industrial applications and other technologies.
A sustained reduction in PGM production could affect mining companies, suppliers and workers connected to the industry. The diamond figures also demonstrate how sharply production can change in individual mineral categories, although the overall impact depends on each commodity’s contribution to total mining output. Statistics South Africa+1
4. Mining production contracted by 6% in the third quarter
The September report also revealed a difficult quarter for the mining industry. Seasonally adjusted mining production decreased by 6% in the third quarter of 2026 compared with the second quarter. This was the second consecutive quarterly decline. Platinum group metals were the largest negative contributor, with production falling by 12.5% between the two quarters.
Iron ore production declined by 6.5%, while coal production decreased by 3.5%. The quarterly performance is important because it provides a broader picture than one month’s figures. Economists warned that the mining contraction could weigh on South Africa’s economic growth. Mining contributes to employment, exports, investment and government revenue. A prolonged downturn can therefore affect businesses beyond the mines themselves. Suppliers, transport companies, engineering contractors and communities that depend on mining activity can also feel the consequences. Statistics South Africa+2
5. Higher operating costs and transport problems remain major concerns
South African mining companies continue to operate in a challenging environment. Electricity expenses, fuel prices, transport limitations and international market uncertainty all influence mining operations.
The Minerals Council South Africa reported that its mining composite input cost index increased by 4.9% year-on-year in September, compared with 3.7% in August. The increase indicates renewed pressure on the costs faced by mining companies. Fuel-related expenses are particularly important because mining operations depend on heavy machinery, trucks and transport networks.
Rail and port inefficiencies also make it harder for producers to move minerals to export markets efficiently. FNB economist Thanda Sithole warned that infrastructure constraints and elevated operating costs were likely to keep pressure on mining activity. Improving electricity reliability, strengthening transport logistics and encouraging investment in mining capacity will be important if the sector is to recover.