Gold – January
production down 8.7%
year on year
 
Johannesburg, South Africa — MININGREVIEW.COM — 12 March 2009 – South Africa’s total mining production for January fell 11% year on year. Gold production was 8.7% lower than in January last year, while non-gold production tumbled 11.4% in the same period.

Announcing these latest production figures, Statistics South Africa said the decrease in total mining production for January was largely attributable to negative contributions from diamonds (-6.2 percentage points), platinum group metals (-2.3 percentage points) and chromium (-1.1 percentage points).

It added that according to mining production and sales data for January, total mining production for the three months to 31 January 2009, after seasonal adjustment, had decreased by 10.7%, compared with the previous three months. The main contributors to this decrease were platinum group metals (-5.7 percentage points) and diamonds (-3.3 percentage points).

Statistics South Africa pointed out that – despite the general fall-off in production across commodities, due to production cutbacks and weakening commodities demand and prices in the latter part of the year – mineral sales had increased for 2008.

The total value of mineral sales at R20.3billion was 33.5% higher in 2008, compared with 2007.

This rise in the value of mineral sales followed increases of 15.9% in 2007 and 35.5% in 2006.

Major contributors to the annual increase in 2008 were coal (12.4 percentage points or R27.8 billion), manganese ore (6.1 percentage points or R13.8 billion), PGMs (5.8 percentage points or R12.9 billion) and iron ore (3.9 percentage points or R8.8 billion).

The total seasonally adjusted value of mineral sales at current prices for the fourth quarter of 2008 reflected a decrease of 10.9%, compared with the previous three months. This could be attributed largely to a decrease of 15.8% (R10.8 billion) in non-gold mineral sales.