SA mining “’
our production
decline continues
 
Johannesburg, South Africa — MININGREVIEW.COM — 12 February 2010 – Both mining production and the actual estimated total value of mineral sales at current prices in South Africa have continued their downward trend in 2009.

Revealing this in a statement released here, the latest mining production figures published by Statistics South Africa show that mining production last year declined by 6.7% year-on-year, having fallen 5.6% year-on-year in 2008.

The statement added that major contributors to the annual production decrease were diamonds (contributing -3.5 percentage points) and gold (contributing -1.0 percentage point). It pointed out that iron ore production had increased by 13.1% in 2009 and had contributed positively with 0.9 of a percentage point.

In December 2009, mining production had dropped by -2.5% year-on-year, compared to a -2.6% decline in November. For the three months from October to December 2009, production was down -5.3%, compared to the comparative quarter in 2008, but was up 0.6% compared to the July to September 2009 quarter.

Statistics SA went on to say that the seasonally adjusted value of mineral sales at current prices for the three months ended November 2009 had reflected an increase of 1.5% compared to the previous three months. This increase of R847.3 million was mainly due to increases in the sales value of PGMs (contributing 4.4 percentage points or R2.494 billion rand), gold (contributing 1.6 percentage points or R923.1 million) and manganese ore (contributing 1.3 percentage points or R730.2 million).

The actual estimated total value of mineral sales at current prices for the three months ended November 2009 decreased by 25.9% compared to the same three months in 2008.

The major contributors to this decrease were coal (contributing -9.0 percentage points or -R7.115 billion), PGMs (contributing -5.6 percentage points or -R4.404 billion), other non-metallic minerals (contributing -4.5 percentage points or -R3.544 billion) and manganese ore (contributing -3.6 percentage points or -R2.823 billion.)