Ore on the conveyor
into the plant – but
production is down
 
Johannesburg, South Africa — MININGREVIEW.COM — 10 October 2008 – Total mining production in South Africa – the world’s biggest precious metals producer –decreased by 0.5% from the previous quarter in the three months to 31 August 2008, and by 8% compared to the corresponding quarter of 2007.

Releasing latest production figures here, Statistics South Africa revealed that the three biggest contributors to the 0.5% decrease were gold (-0.7 of a percentage point), diamonds (-0.5 of a percentage point) and coal (-0.4 of a percentage point). Iron ore production was the only significant positive contributor (0.9 of a percentage point) to mining production for the three months ended August 2008.

Actual total mining production for August 2008 decreased by 6.2% compared to August 2007, reflected by both gold and non-gold mineral production decreasing by 23.2% and 3.5% respectively

Statistics South Africa added that the total seasonally adjusted value of mineral sales at current prices for the three months ended July 2008 had reflected an increase of 7.0% on the previous three months.

This increase of 7.0% (R5 293.2 million) could be attributed to an increase of 7.9% (R5 059.4 million) in the sale of non-gold minerals and 2.1% (R233.8 million) in the sale of gold. The actual estimated total value of mineral sales at current prices for the three months ended July 2008 rose by 48.7% above the three months ended July 2007. The major contributors to this increase were PGMs (15.8 percentage points or R8 887.5 million), coal (14.1 percentage points or R7 922.7 million) and manganese ore (7.9 percentage points or R4 451.0 million).