Platinum, gold drag down June mining performance
JOHANNESBURG (miningweekly.com) – South Africa’s mining production decreased 6.2% year-on-year during June, after a 1.1% decline in May, as gold and platinum-group metals (PGMs) weighed on total output.
PGMs and gold production contributed -4.6 and -2.3 percentage points respectively, while iron-ore, with 2 percentage points, was a significant positive contributor.
Seasonally adjusted mining production declined 3% month-on-month, following month-on-month changes of 4.2% in May and 2.5% in April, and increased 0.1% quarter-on-quarter during the second quarter.
The main contributors to the 0.1% increase were iron-ore, contributing 1.7 percentage points, and coal, with a contribution of 1.3 percentage points. PGMs at -2.2 percentage points was a significant negative contributor.
“The latest numbers continue to reflect the tough business conditions in a sector beset by labour instability, falling commodity prices and rising production costs. Prospects for the mining sector remain poor as global demand conditions will remain unfavourable for the foreseeable future,” Nedbank said in a flash comment to clients.
Meanwhile, mineral sales decreased 8.5% year-on-year in May, after rising 13.3% in April.
Seasonally adjusted mineral sales fell 11.3 % month-on-month in May.
The quarter-on-quarter 1.8% decrease during the second quarter was driven by the sales value of gold contributing -3.4 percentage points.
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