South Africa: Mineral Resources Welcomes Improved GDP Figures

3 September 2019

The Mineral Resources and Energy Ministry on Tuesday welcomed the mining sector's performance in Gross Domestic Product (GDP) figures for the second quarter of 2019.

This as Statistics South Africa (Stats SA) released the latest GDP figures, which revealed that the economy grew by 3.1% and that mining and the quarrying industry increased by 14.4%. The industry contributed 1% to GDP growth.

Stats SA said increased production was reported for mining of iron ore, manganese ore, and coal and "other" metal ores including platinum.

"The Ministry of Mineral Resources and Energy notes and welcomes the performance of the mining sector in the second quarter of 2019 wherein the economy rebounded from a major decline in the first quarter to record a 3.1% positive growth," said the ministry.

In the first quarter of 2019, the mining sector had declined by 10.8%.

"As previously asserted by the Minister, mining is about more than a few minerals. This suggests a holistic outlook is required on the industry, beyond the minerals that have been dominant over a long time, which are now in decline."

The ministry said the sector's second quarter's performance was encouraging and "attests to the work undertaken together with the department's social partners to turn the industry around".

"The department will continue to prioritise this work moving forward, in order to ensure the sector's positive contribution to the economy is sustained," said the ministry.

Meanwhile, Nedbank economists had forecast the GDP to expand by 2.8% following a 3.2% decline in the first quarter.

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