JOHANNESBURG (miningweekly.com) – South Africa’s mining output contracted by 3.5% in March, Statistics South Africa (Stats SA) reported on Thursday.

This followed two consecutive months of recovery, rising 6.7% and 6.8% in January and February respectively.

Stats SA noted that other metallic minerals recorded the largest negative growth rate with a 46.5% decline, which was followed by copper and coal with a 23.7% and 15.8% decline respectively.

Manganese ore reported the highest positive growth rate during March, rising 15.2%, followed by nickel output increasing by 13.8%, chromium ore 12.2% and iron-ore 10%.

The statistics agency revealed that the main contributors to the March output decline were coal, contributing -4.1 percentage points, other metallic minerals, contributing -1.3 percentage points and gold, contributing -1 percentage point.

“The numbers suggest that the normalisation of mining production activity lost momentum in March after a better start to the year. This does not bode well for a sector facing uncertain prospects,” said Nedbank in a flash comment to clients.

Seasonally adjusted mining production decreased by 3.5% in March, compared with a decline of 3.5% in February and an increase of 5.8% in January.

Nedbank commented that production was likely to remain weak during the year, on the back of rapidly rising costs, particularly higher wages and energy costs.

“… any rise in mining production is [likely] to be mainly due to an improvement in activity from the strike-related disruptions in 2012,” the bank said.

In February, mineral sales rose by 2.7% year-on-year, with the highest positive growth rate recorded in the platinum group metals sector, at 26.5%. The sector also contributed 4.8 percentage points during the month.

Building materials recorded a growth rate of 10.8% and chromium ore 10.6%.

Seasonally adjusted mineral sales at current prices decreased by 1.5% in February, compared with 3.2% in January and 8.6% in December.