Weak economic conditions lead SA mining production towards decline

This article was last updated on April 16, 2022

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Statistics South Africa data released on Thursday has revealed that South African mining production has witnessed a decline of 3.4 percent year on year (y/y) in August after a revised 5.0 percent (5.1 percent) decrease in July. 

Quarterly adjusted mining production has decreased by 5.1 percent for the three months ended August compared with the three months ended May.  Major contributors to this downfall were platinum group metals (PGMs), which contributed -2.8 percentage points and coal, with a -1.5 percentage point’s contribution. 

Despite the expectations that the mining sector will show a slight recovery after production plunge in July, the actual mining production was 2.7 percent lower for the three months ended August 2011 compared with the three months ended August 2010. 
 
The total seasonally adjusted value of mineral sales at current prices reflected virtually no change for the three months ended July 2011 compared with the three months ended April 2011. Seven out of the eleven mineral groups/minerals reported negative growth rates during this period. However, large increases were reported for iron ore, other metallic minerals and gold. 

The actual value of mineral sales at current prices for the three months ended July 2011 increased by 14.7 percent compared with the three months ended July 2010. The major contributors to this increase were iron ore, PGMs, other metallic minerals and gold. 

Iron ore contributions are 7.4 percentage points or R5.7 billion; PGMs contributed to 3.4 percentage points or R2.7 billion; other metallic minerals contributed to 1.9 percentage points or R1.5 billion; and gold contributed to 1.5 percentage points or R1.2 billion.

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