Pretoria, South Africa — MININGREVIEW.COM — 13 August 2010 – South African mining production has dropped for the second successive month, mainly owing to declines in the platinum group metals (PGMs) market.
Revealing this in its latest report, Statistics South Africa’s said that production had fallen by 4.9% year-on-year in June, following a 7.6% year-on-year decline in May. Overall mining production for the second quarter was 6.7% lower than the first-quarter output, driven by the declines in PGMs and coal production.
The report revealed that PGM production declined by 19.3% in June, partly owing to seasonal maintenance of smelters.
Gold production fell by 5.3% year-on-year, but production had been on the downward path for a number of years and would be further impacted by higher input costs, owing to the 25% electricity increase that took effect in April, and the application of mining royalties. There have also been safety related stoppages in the gold industry, due to closures related to accidents.
On the positive side, the production of diamonds, iron-ore and manganese-ore increased in June, as global demand improved on the back of inventory buildup.