JOHANNESBURG (miningweekly.com) – South Africa’s mining production fell by 6,7% in 2009, compared with 2008, Statistics South Africa (Stats SA) reported on Thursday.

The 6,7% drop in annual mining production for 2009 followed decreases of 5,6% in 2008 and 0,9% in 2007.

The major contributors to the 2009 production decrease were diamonds, which contributed 3,5 percentage points decline, and gold, which contributed a decline of one percentage point.

In December, mining production continued its downward path, contracting by 2,5% year-on-year.

However, Stats SA noted that iron-ore production increased by 13,1% in 2009 and contributed positively with 0,9 of a percentage point.

The total mining production for the fourth quarter of 2009, after seasonal adjustment, increased by 0,6% compared with the third quarter of 2009.

The major contributor to this increase of 0,6% in total mining was platinum group metals (PGMs), contributing 2,8 percentage points. However, coal production partially counteracted the seasonally adjusted growth of 0,6% in total mining in the fourth quarter of 2009 with a negative contribution of 1,8 percentage points.

Stats SA reported that the total seasonally adjusted value of mineral sales at current prices for the three months ended November 2009, reflected an increase of 1,5% compared with the previous three months.

The increased value of sales, which amounted to around R847,3-million, was mainly owing to increases in the sales value of PGMs, which contributed 4,4 percentage points or R2,5-billion, gold, which contributed 1,6 percentage points or R923,1-million, and manganese ore, which contributed 1,3 percentage points or R730,2-million.

The actual estimated total value of mineral sales, at current prices, for the three months ended November 2009, decreased by 25,9% compared with the three months ended November 2008, Stats SA reported.

The company added that the major contributors to this decrease were coal, which declined by nine percentage points or R7,1-billion, PGMs, which declined 5,6 percentage points or R4,4-billion, and other non-metallic minerals, which contributed a decline of 4,5 percentage points or R3,5-billion.

Manganese ore also declined by 3,6 percentage points or R2,8-billion.

Financial services provider Investec’s Group Economics analyst Kgotso Radira noted that the recovery in South Africa’s mining production depended on global industrial demand, which was showing signs of stabilisation.

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