South Africa’s mining production slipped for the first time in nine months in November as logistical constraints weighed on local coal and iron ore companies. Stats South Africa data published on Tuesday showed the country’s mining production falling 2.7% more than a year ago in November, underperforming consensus expectations after a revised 6.1% rise the previous month. Seasonally adjusted, the nation’s output slumped 5.9% between October and November.
The biggest pressure came from coal, production of which fell nearly 8% year on year, and iron ore, output of which slipped 7.6% in November. Exxaro Resources, owner of the country’s largest coal mine, hasin recent monthsblamed US President Donald Trump’s tariffs for the coal sector’s gloomy outlook. Exxaro finance director Riaan Koppeschaar said in its latest trading update that resultant inflationary pressures, dampened global investor sentiment and heightened volatility in financial markets had put pressure on Richards Bay Coal Terminal export prices, which are expected to average $89 per tonne in 2025, down from $105 in 2024.
Glencore’s South African coal business also cited logistics constraints and infrastructure challenges in its latest update. Meanwhile, local iron ore miners continue to be pressured by depressed and volatile prices amid elevated Washington-Beijing trade tension. China, the world’s largest iron ore consumer, buys about three-quarters of global seaborne supplies of the steelmaking ingredient.
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Anglo American’s Kumba Iron Ore, Africa’s largest iron ore miner, reported a 2% slip in production in its latest results amid plant maintenance. Investec economist Lara Hodes added that weaker manufacturing activity in the Eurozone, a key South African trading partner, also weighed on iron ore demand during November. “Globally, while global growth has proved more resilient than previously anticipated among heightened trade tensions, a number of risks to the global growth scenario remain that could weigh on steel demand,” she said.
Logistics constraints and market headwinds aside, local minerscontinue to be weighed downby input cost inflation. The decades-long trend of rising operating expenses is easy to overlook amid substantial market tailwinds, particularly for the gold and platinum group metal (PGM) sectors.
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