Johannesburg, South Africa — MININGREVIEW.COM — 08 August 2008 – Total mining production in South Africa – the world’s biggest precious metals producer –has halted its downward trend, and mineral prices are riding higher than ever.
Releasing latest production figures here today, Statistics South Africa revealed that the country’s overall mining output for the second quarter of 2008 had risen 7.7% above production in the first quarter of the year. The production of platinum group metals (PGMs) contributed 4.4% while diamonds contributed 1.5% Nickel was the only significant negative contributor (-0.1%) to the quarterly change in total mining production.
Statistics South Africa pointed out, however, that total mining production for the second quarter of 2008 had decreased by 4.5%, compared with the second quarter of 2007.
It added that total mining production for June 2008 had dropped 6.3% below output for June 2007. Gold production decreased by 12.3% in June 2008 compared with June last year.
The statement added that the total seasonally adjusted value of mineral sales at current prices for the three months ended May 2008 had reflected a substantial increase of 23.8% (R15 271.7 million) above the previous three months. This increase could be attributed to a rise of 26.1% (R2 469.2 million) in the sale of gold and 23.5% (R12 802.5 million) in the sale of non-gold minerals.
The actual total value of mineral sales at current prices for the three months ended May 2008 increased by 40,0% compared to the three months ended April 2007. The major contributors to this increase were PGMs (13.5% or R7 530.2 million), coal (10.3% or R5 792.6 million), manganese ore (6.5% or R3 667.5 million) and iron ore (3.8% or R2 132.6 million).