SA mining production slump continues, but better news for mineral sales

Mining production's slump has continued, with production decreasing by 7,5% year-on-year in February 2019.

January saw a 3.3% decline year-on-year, following a 4.1% decrease in December and a 5.2% decrease in November.

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Biggest losers: gold, iron ore and diamonds

According to data released by Stats SA on Thursday, the largest negative contributors in February were diamonds, gold and iron ore, with diamond production dropping by a total of 48.3% and contributing -3.2 percentage points.

Gold was down 20.6% and contributed -3.0 percentage points.

Iron ore, with a decline of 20.7%, contributed -2.9 percentage points.

Platinum still performing

Platinum group metals were the largest positive contributor, with an increase in production of 17.8%, contributing 2.8 percentage points overall.

Mineral sales increased by 10,6% year-on-year in February 2019, with the largest positive contributors being platinum group metals, manganese ore and iron ore.

PGMs rose by 36.0% and contributed 5.4 percentage points, Stats SA said, while manganese ore rose by 44.6% and contributed 3.5 percentage points.

Iron ore rose by 21.3% and contributed 2.7 percentage points.

Seasonally adjusted production

Seasonally adjusted production decreased by 1.5% in February 2019 compared to January 2019, following month-on-month changes of 0% in January and -1.5% in December 2018.

In the three months ended February 2019, compared with the previous three months, mining production decreased by 5.0%.

Here, too, diamonds and gold were the biggest negative contributors.

In the three months ended February 2019, however, the seasonally adjusted value of mineral sales at current prices was 4,4% higher compared with the previous three months, Stats SA said.