South Africa's Mining Sector Sees Production Surge Due to PGMs and China's Stockpiling
South Africa's mining sector has experienced significant production growth in early 2026, driven primarily by the expansion of platinum group metals (PGMs) and China's strategic stockpiling of essential steelmaking materials. According to the Minerals Council South Africa, the sector saw a 9.7% year-on-year increase in production in February, building on a 5% rise in January. This growth is largely attributed to a 52.3% increase in PGMs, which contributed 9.4 percentage points to the overall growth. Additionally, China's accumulation of reserves in iron ore, chrome ore, and manganese ore has played a crucial role. Despite these gains, the sustainability of this growth is uncertain, as it may be more reflective of base effects rather than a structural demand shift. The sector also faces challenges, such as a persistent contraction in coal production, which has declined for four consecutive months. 
