South Africa's PGM sector faced a rough Tuesday: official data showed mining output sliding further in August, and the country's largest mining union condemned another fatality at Sibanye-Stillwater. Away from the headwinds, Tharisa closed its financial year with higher PGM output and Southern Palladium unveiled a sharply improved economic case for its Bengwenyama project.
Top stories#
South Africa's mining output falls 12.7% in August as PGMs lead the decline#
South Africa's mining industry recorded production falling 12.7% year-on-year in August, according to figures cited by Eyewitness News, which noted this is a steeper decline than the 7% drop recorded in July. Platinum group metals were the biggest drag on output, while the weakness was also reflected in mineral sales, which fell 15.1% year-on-year, with gold sales down 48.6%. Stats SA's principal survey statistician Juan-Pierre Terblanche said "this is the largest year-on-year decline since October 2022, when production weakened by 13.4%. Platinum group metals, coal and iron ore were the biggest drags on overall growth in August." He added that "gold, copper, nickel and diamonds also performed poorly. On the upside, chromium ore and manganese ore recorded a positive month." The data underline how weak PGM output continues to weigh on South Africa's broader industrial production. See DailyPlatinum's PGM market overview and mining explainer.
NUM condemns another Sibanye-Stillwater fatality, demands inspectorate action#
The National Union of Mineworkers said it strongly condemns the ongoing loss of life in the mining sector and reiterates that it will not tolerate a situation where mineworkers continue to die while critical safety failures remain unaddressed. The statement followed the death of a mineworker on Friday, 9 October 2026, as a result of a fall-of-ground incident at Sibanye-Stillwater's Hlanganani Shaft. NUM said the recurring pattern of fall-of-ground fatalities at Sibanye-Stillwater operations underscore the urgent necessity for comprehensive intervention, calling for measures including "Rigorous Ground Control Management: Conducting comprehensive assessments, installing adequate support, and enforcing continuous geotechnical monitoring to eliminate rockfall hazards." The union calls on the Department of Mineral and Petroleum Resources, through the Mine Health and Safety Inspectorate, to launch an immediate, independent, and exhaustive investigation into the circumstances of the 9 October fatality, including verifying that corrective measures are implemented before operations proceed and exercising authority to halt unsafe operations. The statement comes days after Sibanye confirmed the end of its Montana strike. Readers can track the company via DailyPlatinum's Sibanye-Stillwater production page.
Tharisa closes FY2026 with a stronger fourth quarter and a firmer PGM price#
Tharisa's quarterly output climbed into year-end: the miner mined and processed more PGM ore in the three months to end-September than the prior quarter, lifting PGM production to 41,000 ounces, a 3.5% quarterly gain, while chrome concentrate output rose 5.8% to 416,700 tons, according to MiningMX. Across the full financial year, PGM production grew 11% to 153,700oz and chrome output reached 1.56 million tons, both landing within the company's own targets. Analyst house Peel Hunt said production came in broadly as expected, with PGM output about 1% below its estimate but with a richer metal mix skewed toward higher-value rhodium and iridium, while the realized basket price ran roughly $160/oz above its forecast. CEO Phoevos Pouroulis said the year marked the point at which growth moved "from planning into construction." Tharisa's average PGM basket price for the full year rose 61% to $2,607/oz from $1,615/oz, although it eased 5.4% quarter on quarter to $2,535/oz as prices cooled into year-end. At the company's Karo project in Zimbabwe, construction has progressed from bulk earthworks into fabrication and structural steelwork, with first ore to the mill still targeted for the fourth quarter of 2027; Tharisa has committed $240m of an estimated $516m project budget so far. See DailyPlatinum's PGMs in autocatalysts explainer for context on rhodium and iridium demand drivers.
Southern Palladium more than doubles Bengwenyama's projected value in updated study#
Southern Palladium published an updated 2026 prefeasibility study for its 70%-owned Bengwenyama PGM-chrome project on the Bushveld Complex's Eastern Limb, more than doubling the project's estimated post-tax net present value to US$1,961 million at an 8% discount rate, up from US$857 million in the prior study, while the projected internal rate of return rose to 39.1% from 26.4%, according to Kalkine. The improvement is driven largely by metallurgical test work that lifted projected chromite recovery to 85.6% from 30%, which in turn raises life-of-mine chrome concentrate output to 17.2 million tons from 6.0 million tons. The study also projects 7.72 million ounces of 6E metal recovered over a 33-year mine life, an all-in sustaining cost of US$943 per 6E ounce including by-products, and a realized 6E basket price of US$2,210 per ounce, for a 57% margin versus 48% previously. The company estimates peak project funding of US$329 million, up from US$279 million in the earlier study, which it attributes mainly to a stronger rand forecast. Bengwenyama sits on the Eastern Limb of the Bushveld Complex; see DailyPlatinum's mining explainer for background on the basin.
Prices and market context#
Platinum traded at $1,669.00/oz bid as of 11:13 a.m. New York time on 13 October 2026, down $15.00 or 0.89% on the day, according to Kitco. Palladium traded at $1,112.00/oz bid as of 11:16 a.m. New York time the same day, down $12.00 or 1.07%, also per Kitco. Both metals softened intraday against a backdrop of weak South African mine supply data. For live pricing, see DailyPlatinum's platinum price page and palladium price page.
What to watch#
- Mine Health and Safety Inspectorate findings on the 9 October Hlanganani shaft fatality, as demanded by NUM.
- Stats SA's next mining production release, due to show whether the PGM-led decline persists into September.
- Tharisa's FY2027 guidance execution, with Karo Platinum first ore targeted for Q4 2027 and underground first ore from the Tharisa mine expected this quarter.
- Further disclosure on Southern Palladium's Bengwenyama funding plan, given the project's US$329 million peak funding requirement.
Sources
- National Union of Mineworkers: https://num.org.za/news-reports-speeches/posts/num-condemns-continued-fatalities-at-sibanye-stillwater-calls-for-urgent-accountability-and-decisive-enforcement-following-fatal-fall-of-ground-incident-at-hlanganani-shaft/
- Eyewitness News (EWN): https://www.ewn.co.za/sa-mining-production-reports-127-plunge-in-august
- MiningMX: http://www.miningmx.com/2026-10-13-tharisa-lifts-q4-production-keeps-karo-on-track/
- Kalkine: https://kalkine.com.au/news/announcements/southern-palladium-updated-pfs-delivers-post-tax-npv-of-us196-billion-and-irr-of-391-for-bengwenyama-project
- Kitco: http://www.kitco.com/charts/platinum and http://www.kitco.com/charts/palladium