S African mining production drops 4.8% y/y in Sept
JOHANNESBURG (miningweekly.com) – As local headline mining production growth slipped back into negative territory, falling 4.8% year-on-year in September, the sector probably entered a technical recession in the third quarter, which will be confirmed when production-side gross domestic product figures are released on November 24, BNP Paribas Cadiz Securities said on Thursday.
Economist Jeffrey Schultz noted that the decline was unsurprising, considering the rising pressures in an industry which continued to grapple with falling global commodity prices, weak demand and faltering productivity.
On a seasonally adjusted month-on-month basis, production slipped 3.7% in September, its third consecutive month of decline. The decrease was driven mainly by a 7.3% contraction in coal production, a 3.2% drop in platinum group metals (PGMs) output and a 1.9% contraction in gold production.
The largest year-on-year negative growth rates were recorded in the diamonds sector, falling 38.5%, “other” metallic minerals, which fell 30.1% and iron-ore, down 17.9%.
PGMs was a significant positive contributor, with output rising 25% year-on-year.
However, Schultz warned that this favourable base effect from last year’s strikes in the platinum sector was fading fast, with PGM production growth having registered growth of nearly 100% year-on-year in May.
Seasonally adjusted mining production decreased by 2.5% in the third quarter compared with the second quarter.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation