https://www.miningweekly.com

May mining output falters on uncertain commodity prices

13th July 2017

By: Martin Creamer

Creamer Media Editor

     

Font size: - +

JOHANNESBURG (miningweekly.com) –  Mining production data released by Statistics South Africa on Thursday revealed a second consecutive month of production contraction.

The -0.2% contraction and the -1.4% contraction in April are viewed as concerning by Chamber of Mines of South Africa chief economist Henk Langenhoven, owing to their erosion of the 5% production improvement of the first five months of this year.

Production is now stuck at 2016 levels, which were 5% down on 2015, with the decline largely attributable to a combination of commodity price uncertainty and a nigh-17% stronger rand.

The local currency has strengthened 5%-plus since January.

Although the average prices of the four important export commodities were higher in the six months compared with a year ago, January 2017 seemed to indicate a turning point, with production starting to falter shortly thereafter.

The rand commodity price index has fallen 12% in the last six months, when the rand landed-price for coal and iron-ore fell by 13.5% and 32% respectively.

The gold price remained steady and the platinum price fell 9%, commodities that constitute 86% of exported minerals, the chamber said in a release to Creamer Media’s Mining Weekly Online.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION