Mining production decreased by 4% y/y in June

Mining production decreased by 4% y/y in June

Statistics South Africa (Stats SA) reports that mining production decreased by 4% year-on-year in June, with the largest negative contributor being platinum group metals (PGMs), which recorded a decline of 8.4% year-on-year, contributing -2.4 percentage points.

Coal production decreased by 6.6% and contributed -1.7 percentage points, while iron-ore production declined by 10.2% and contributed -1.5 percentage points.

Seasonally adjusted mining production increased by 0.3% in June compared with May. This followed month-on-month changes of -5.2% in May and 3% in April.

Seasonally adjusted mining production decreased by 2.7% in the second quarter of this year compared with the first quarter.

The largest negative contributor was PGMs, which declined by 6.4% and contributed -1.8 percentage points.

Manganese ore production declined by 5.3% quarter-on-quarter and contributed -0.4 of a percentage point, while gold declined by 3.2% and contributed -0.3 of a percentage point.

Additionally, seasonally adjusted iron-ore production declined by 2% quarter-on-quarter and contributed -0.3 of a percentage point.

Meanwhile, mineral sales at current prices increased by 27.2% year-on-year in June.

The largest positive contributors were gold, which increased by 125.7% and contributed 17.1 percentage points; PGMs, which increased by 27% and contributed 7.3 percentage points; and chromium ore, which increased by 49% and contributed 3.7 percentage points.

Iron-ore, however, declined by 16.1% and contributed -1.7 percentage points and ‘other’ non-metallic minerals declined by 35.5% and contributed -1.3 percentage points. These were the only negative contributors.

Stats SA adds that seasonally adjusted mineral sales at current prices increased by 2.7% in June compared with May. This followed month-on-month changes of -4.4% in May and 3.1% in April.

Seasonally adjusted mineral sales at current prices decreased by 1.6% in the second quarter of this year compared with the first quarter.

Source: Mining Weekly