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JOHANNESBURG (miningweekly.com) – Mining production decreased by 0.4% year-on-year in November, with the largest negative growth rates recorded for platinum-group metals (PGMs), at 14.3%, diamonds, at 14.2%, and gold and copper, both of which saw output contract 10.1%, Statistics South Africa (Stats SA) revealed on Tuesday.
The primary contributors to the 0.4% decrease were PGMs, which contributed -3.3 percentage points, gold, which contributed -1.6 percentage points, and coal, which contributed -1 percentage point.
In contrast, iron-ore was a significant positive contributor, contributing 3.5 percentage points.
Seasonally adjusted mining production, meanwhile, decreased by 1.2% in November compared with October,which followed positive month-on-month changes of 0.6% in October and 7.3% in September.
Seasonally adjusted mining production increased by 6.2% in the three months ended November compared with the previous three months, driven primarily by a 4.7 percentage point increase in PGMs.
Reflecting on the key findings regarding mineral sales for October, Stats SA reported that sales decreased 3.2% year-on-year in October, with the largest negative growth rates recorded for iron-ore (-14.8%), copper (-13.5%) and coal (-10.9%).
The major contributors to the 3.2% decrease were coal, which contributed -3.2 percentage points, iron-ore, which contributed -2.4 percentage points, PGMs, which contributed -1.6 percentage points, and gold, contributing -1 percentage point.
Seasonally adjusted mineral sales at current prices were flat in October compared with September and followed month-on-month changes of 5.7% in September and -0.4% in August.
Commenting on the statistics, BNP Paribas economist Jeffrey Schultz said the second consecutive month of contraction in headline mining production revealed an industry that remained under pressure, given weak global and domestic demand, low productivity and global commodity prices.
“Concerns over the sustainability of domestic electricity supply, strike activity by the National Union of Mineworkers in the PGMs sector in recent weeks and a likely continuation of the pressures mentioned above leaves us cautious on the outlook for this side of the economy.
“Nevertheless, the robust momentum growth in mining production should at least help the sector to contribute healthily to a fourth-quarter production-side growth in gross domestic product,” he said in a statement.