According Stats SA, mining production increased by 3.1% year-on-year in February 2018 which the Department of Mineral Resources has welcomed as it works to finalise legislation in order to improve investment in the country.
Seasonally adjusted mining production increased by 0.9% in February 2018 compared with January 2018. This followed month-on-month changes of 1.7% in January 2018 and -4.1% in December 2017.
The main positive contributors were:
- diamonds (42.9% and contributing 2.0 percentage points)
- iron ore (10.5% and contributing 1.5 percentage points)
- manganese ore (24.3% and contributing 1.0 percentage point); and
- coal (3.9% and contributing 1.0 percentage point)
Seasonally adjusted mining production decreased by 2.4% in the three months ended February 2018 compared with the previous three months.
PGMs (contributing -1.2 percentage points), coal (contributing -0.6 of a percentage point) and ‘other’ non-metallic minerals (contributing -0.6 of a percentage point) were the largest negative contributors.
Key findings regarding mineral sales
Mineral sales increased by 1.8% year-on-year in February 2018. Coal (17.2% and contributing 5.0 percentage points) and manganese ore (20.3% and contributing 1.4 percentage points) were the main positive contributors.
PGMs (-14.3% and contributing -2.6 percentage points), gold (-10.1% and contributing -1.4 percentage points) and iron ore (-8.5% and contributing -1.2 percentage points) were significant negative contributors.
Seasonally adjusted mineral sales at current prices decreased by 4.6% in February 2018 compared with January 2018.
This followed month-on-month changes of -1.1% in January 2018 and -2.0% in December 2017.
Department welcomes increase in mineral production
The Department of Mineral Resources has welcomed the year-on-year increase in mineral production in February, on the back of higher commodity prices.
The increase supports the Department’s view of a resurgence in the sector, following the rise in commodity prices, which supported increased market capitalisation as well as increased exploration activities, among others.
Work underway to finalise the Mining Charter, the Mineral and Petroleum Resources Development Amendment Bill and the Vision 2030 for the sector is expected to entrench investor confidence in the sector and bodes well for the further growth and development of the industry.