Business Day (Johannesburg)

South Africa: Mining Production Up 7.7 Percent for January

Johannesburg — Stats SA reports the index of total mining production was 7,7% higher in January 2010 compared with January 2009.

The 7,7% increase in mining production year-on-year followed decreases of 2,3% in December 2009 and 2,2% in November 2009. This is the first positive annual growth since July 2008.

The total mining production for the three months ended January 2010, after seasonal adjustment, increased by 3,3% compared with the previous three months. The production of platinum group metals (PGMs) was the main contributor (contributing 3,6 percentage points), while iron ore contributed 1,0 percentage point to the 3,3% increase.

The total value of mineral sales was 22,7% lower in 2009 compared with 2008, following increases of 34,0% in 2008 and 15,9% in 2007.

The major contributors to the annual decrease of 22,7% in 2009 were Platinum Group Metals which dropped 11,2% or or -R33 565,4 million, coal dropped 5,4% or R16 319,2 million and manganese ore down 3,9% or R11 762,8 million.

But the value of iron ore and gold sales increased in 2009 and contributed 1,6 percentage points and 0,9 of a percentage point respectively to the annual 22,7% decrease.


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