HomeBase MetalsSouth African mining production slumps by 6.9% in April - Stats SA

South African mining production slumps by 6.9% in April – Stats SA

The Statistics South Africa  (Stats SA) report showed that year-on-year mining production contraction was a result of iron ore, which decreased by 23.4% and accounted for 4.3 percentage points overall.

This follows a record decrease in production of 17.8% in March as well as an 8.3% decrease in February and 6% decrease in January.

Compared with March, however, mining production increased by 2.7% in April, compared with March 2016. This followed month-on-month changes of a 2.6% decrease in March 2016 and 2.6% increase in February 2016.

For the quarter, production decreased 2.4%, compared with the three months before.

Meanwhile, mineral sales decreased by 1.1% year-on-year in March 2016, dragged down by platinum group metals, which accounted for a 17.1% decrease and contributing 4.1 percentage points.

A significant positive contributor was gold at 23.5%  – contributing 3.9 percentage points.

The lower demand for South Africa’s commodities, which was once the main contributor to the country’s gross domestic product, was 18.1% lower in the first quarter of 2016.

The result of this mining slump led to the 1.2% contraction in the country’s GDP, as announced by Stats SA on Wednesday.

Chantelle Kotze
Chantelle Kotze is a Johannesburg-based media professional. She is a contributor at Mining Review Africa (Clarion Events - Africa) and has created content for the media brand over the past 6 years.