JOHANNESBURG (miningweekly.com) – South Africa’s mining production rose 7,7% year-on-year in January, its first year-on-year increase in six months, Statistics South Africa (Stats SA) revealed on Thursday.

Mining output had last recorded a year-on-year rise of 3,4% in July last year and before that an increase of 2,1% in October 2008.

Apart from these, year-on-year declines in production had been recorded for the remainder of months between June 2007 and December last year.

Increased chromium ore, nickel, diamonds and platinum-group metal (PGM) output were the main drivers behind the rise in the overall production in January, while the production of copper, gold and other nonmetallic minerals fell, noted Investec economist Kgotso Radira.

“The latest manufacturing and mining production continues to support our view that South Africa’s economic recovery path will be driven by the supply side, while the demand side lags behind,” commented Radira.

The economist added that while conditions in both these sectors have improved in recent months, the outlook remained uncertain, as it remained dependent on the pace of the recovery in external demand, which could be hampered by increased electricity prices.

In February, the National Energy Regulator of South Africa approved a 24,8% tariff increase for power utility Eskom for 2010/11, as well as increases of 25,8% for 2011/12 and 25,9% for 2012/13.

Meanwhile, Stats SA noted that total mining production for the three months ended January had increased by 3,3%, compared with the three months ended October 2009.

The main contributors to this increase had been the PGM and iron-ore sectors.

Total mining output for the three months ended January increased by 0,6% on the three months ended January 2009.