South Africa Appoints New US Ambassador as Mining Output Surges and JSE Closes Lower on Resource Weakness
South Africa’s business and economic landscape on Wednesday was shaped by three main developments: the appointment of Roelf Meyer as the country’s new ambassador to the United States, a sharp increase in mining production driven largely by platinum group metals and Chinese demand dynamics, and improved operational performance at Eskom. These developments unfolded alongside a weaker session on the Johannesburg Stock Exchange (JSE), where losses in resource-heavy stocks outweighed gains in selected industrial and financial shares.
Resources weigh on JSE as markets end in the red
The JSE ended slightly lower, as weakness in resource stocks offset gains in industrial and financial sectors.
The JSE All Share Index closed at 119,353, down 0.37%, after trading between 119,065 and 120,075. The index opened at 120,075, compared with a previous close of 119,796.
Sector performance was mixed. The Resources 10 index declined 1.27%, while industrials rose 0.15% and financials gained 0.11%. Property stocks fell 0.14%.
Mining and precious metals counters weighed on the index, with AngloGold Ashanti, Gold Fields and Impala Platinum all ending lower, as softer commodity prices and a more cautious tone in the sector dampened sentiment.
Among individual movers, Alphamin rose 4.85%, while Bytes Technology Group gained 2.88%. Discovery added 2.56% and Harmony Gold advanced 2.32%.
On the downside, Thungela Resources dropped 4.25%. Several gold mining shares also ended weaker.
Trading activity was concentrated in large-cap stocks. FirstRand recorded the highest value traded at more than R2.2 billion, followed by AngloGold Ashanti and Naspers.
Commodity markets were mixed. Gold fell to around $4,820 per ounce, while platinum recorded an increase above $2,100 an ounce, striking a four-week high as precious metals broadly advanced on renewed hopes for a diplomatic resolution to the Middle East conflict. Brent crude rose to $95 per barrel.
Global equity markets showed mixed movement. Japan’s Nikkei closed slightly lower, while European indices, including the DAX and CAC-40 were broadly steady.
In the United States, futures remained firm, with the S&P 500 trading near record levels.
Cryptocurrency markets were stable, with Bitcoin rising 0.19% to $74,171.
Former apartheid minister now SA ambassador to America
Business organisations welcomed the appointment of Meyer as South Africa’s ambassador to the United States, following confirmation by President Cyril Ramaphosa. The appointment comes after the expulsion of former ambassador Ebrahim Rasool and amid ongoing diplomatic and trade sensitivities between Pretoria and Washington.
Business Leadership South Africa (BLSA) said Meyer’s experience in South Africa’s constitutional negotiations positions him to strengthen bilateral relations and support economic engagement with the United States. The organisation noted that the US remains a key trading partner and source of investment, with around 600 American companies operating in South Africa.
RISE Mzansi also welcomed the appointment, stating that the role should prioritise economic diplomacy and the strengthening of trade and investment ties. The party said South Africa’s foreign policy engagement with the United States must focus on economic outcomes alongside broader diplomatic considerations.
Mining sector output rises on PGMs and China demand
The Minerals Council South Africa said platinum group metals (PGMs) were the main driver of growth, expanding by more than 50% year-on-year and contributing to the bulk of the increase.
The council said the rise was partly due to a low base in 2025, which amplified year-on-year comparisons.
Increased demand from China also supported production, particularly for chrome and manganese, as stockpiling of key steelmaking inputs continued.
Iron ore production declined by more than 12%, offsetting some of the gains and highlighting uneven performance across commodities.
The Minerals Council said the data reflects a combination of commodity-specific demand patterns and short-term factors rather than a uniform recovery across the sector.
Acting chief economist at the Minerals Council South Africa, Bongani Motsa, said the growth in mining output was concentrated in platinum group metals and influenced by Chinese demand for steelmaking inputs.
He said the sustainability of the growth remains uncertain due to reliance on a limited number of commodities and base effects from earlier production levels.
Motsa said the data shows mixed conditions across the mining sector, with gains in some commodities offset by declines in others.
Eskom: operational improvement and energy transition
The EAF measures the percentage of time that power stations are available to generate electricity when required.
The utility said the improvement was driven by its Generation Recovery Plan, improved maintenance practices, and reduced reliance on diesel-based emergency generation.
Eskom recorded 322 consecutive days without load shedding during the period.
While the utility has not yet reached its 70% EAF target, it said system conditions remain stable, and no loadshedding is expected during the upcoming winter period.
Eskom also outlined a cost reduction programme targeting R112 billion in savings over five years as part of broader operational restructuring.
The utility said it is adapting to a changing electricity market, including increased participation by independent power producers and growing adoption of rooftop solar systems by households and businesses.
Eskom said it is also engaging in renewable energy initiatives as part of its long-term transition strategy while managing existing generation capacity.
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