HomeBase MetalsAnother drop in mining production and mineral sales

Another drop in mining production and mineral sales

A typical South African
mine, where production
continues falling
Pretoria, South Africa — MININGREVIEW.COM — 10 July 2009 – Total mining production and the value of mineral sales during the three months to 31 May 2009 in South Africa – the world’s biggest producer of platinum and third-biggest gold producer – once again showed a substantial decrease.

The latest mining production figures released by Statistics South Africa showed that total mining production for the three-month period ended 31 May 2009 had dropped by 9.6%, compared with the three months ended 31 May 2008. Mining production for May 2009 had decreased by 14.5%, compared with May 2008, reflected by gold and non-gold minerals production decreasing by 10.5% and 15.1% respectively.

Statistics South Africa went on to reveal that the actual estimated total value of mineral sales at current prices for the three months ended 30April 2009 had dropped by 15.5% compared with the same three months last year. The major contributors to this decrease of 15.5%, year-on-year, were PGMs (-12,8 percentage points or R9 363.0 million), manganese ore (-3.9 percentage points or R2 881.3 million), other non-metallic minerals (-1.9 percentage points or R1 373.8 million) and copper (-1.2 percentage points or R835.2 million).

The two minerals that made substantial positive contributions to the change were iron ore (4.4 percentage points or R3 178.2 million) and gold (3.1 percentage points or R2 261.2 million).

The total seasonally adjusted value of mineral sales at current prices for the three months ended 30 April 2009 also reflected a decrease of 1.0% compared with the previous three months. This decrease (R630.5 million) was a result of a decrease of 4.8% (R2 474.8 million) in the sale of non-gold minerals.