South Africa’s mining sector contracted further in June after the country’s key minerals, coal, iron ore, and platinum group metals (PGMs), registered a sharp drop in production — dragging the sector into 4.4% negative territory year on year.The June mining print follows a 5.1% slip in May, with the sector ending the second quarter of the year on a weaker footing and likely to make a dent in GDP growth.Data from Statistics South Africa shows that mining activity shrank by 2.7% in the second quarter of 2026 from the first quarter.In June, the biggest negative contributors to mining output were PGMs, which slipped 8.4%, while coal also detracted 6.6% from mining production, while iron ore was 10.2% in the red.The bright sparks in the month were manganese ore, whose production rose 13.3%; chromium ore, which leapt 8.6%; and gold, whose output went up 6.2%, staging a comeback after a poor May print in which the sector reported a 4.4% decline.The 2.7% contraction in mining in the second quarter bodes ill for economic growth, considering the poor performance of the key manufacturing sector, whose output fell 1.7% year-on-year in June — remaining in contraction for a third consecutive month.The IDC in its latest economic review warned that the continued weakness in fixed investment raises concerns that economic growth will remain driven primarily by consumption rather than by the expansion of productive capacity, with manufacturing registering a trade deficit of R310bn in the first five months of the year.