PGMs and gold boost SA’s mining growth as JSE hits record high and rand strengthens

South Africa’s mining sector recorded modest growth in September 2025, supported largely by stronger output from platinum-group metals (PGMs), gold, and coal, according to Statistics South Africa’s (Stats SA) on Thursday.

The data shows that mining production increased by 1.2% year-on-year in September, while seasonally adjusted mining output rose 2.5% in the third quarter compared with the second quarter of the year.

Jean-Pierre Terblanche, principal service statistician at Stats SA, said the 2.5% expansion in the third quarter was mainly driven by platinum-group metals, which surged 6.7%, adding 1.7 percentage points to overall growth.

Gold production also jumped 5.9% year-on-year in September, the strongest annual gain since July 2023, following a 3.6% decline in August. On a seasonally adjusted basis, gold production increased 6.6% in September, rebounding from a 3.6% drop in August.

“The mining industry also produced more manganese ore, coal, chromium ore, and copper,” Terblanche said.

However, production of iron ore, diamonds, nickel, and gold declined during the quarter, slightly offsetting the gains from PGMs and other minerals.

On a month-to-month basis, seasonally adjusted mining output increased 2.2% in September, the most since May, after a revised 0.9% decrease in August.

Professor Waldo Krugell, an economist at North-West University, said that the mining sector is like everything in SA - not a single entity - and gold and coal are not doing well at the same time.

“PGMs and gold miners have been doing very well this year. They needed it, and the fiscus and economy more broadly will benefit from it. Gold may be a 'barbarous relic' but it has come to our rescue this year.”

The Minerals Council South Africa said that unlocking mining’s full potential through the implementation of an investor-friendly regulatory and operating environment could help stave off future tax increases in the coming years.

“The impact of South Africa’s mining industry reaches deep into the economy and society, contributing R470 billion to household income, supporting millions of livelihoods through well-paid jobs.”

Meanwhile, stocks on the JSE hit an all-time high on Thursday while the rand maintained an upward momentum. 

The JSE All Share Index rallying as much as 2.5% to around 115 716 points, setting a fresh all-time high and extending gains for the fourth session, led by precious metals and mining.

The rand strengthened further, trading below R17 to the US dollar, its highest level since January 2023, propelled by investor optimism over the budget review, a subdued dollar and rising prices of gold. 

Investors reacted positively to South Africa's mid-term budget update that included a lower inflation target and improving fiscal outlook, boosting hopes for a potential S&P Global rating upgrade on Friday.

Finance Minister Enoch Godongwana delivered an optimistic and credible budget speech on Wednesday, underscoring the country’s strong fiscal trajectory and commitment to stabilizing public debt.

He also announced a major policy shift, introducing a 3% inflation target with a 1% tolerance band, replacing the previous 3–6% range, and unveiled a R1 trillion infrastructure investment programme over the next three years. 

 According to the National Treasury, the lower price-growth target is likely to curb inflation and inflation expectations over time, paving the way for lower interest rates, while also improving competitiveness.

Global optimism over the US reopening and expected Fed rate cuts further supported local markets.

BUSINESS REPORT