South Africa’s mining production increased by 5.8% year-on-year in October, with the largest positive contributors having been iron-ore, platinum-group metals (PGM), manganese and chromium ore.
Iron-ore production grew by 24.8% and contributed 2.9 percentage points to Statistics South Africa’s (Stats SA’s) headline mining production figure, while PGMs expanded by 3.9% and contributed 1.1 percentage points.
Manganese output grew by 15.1% and contributed one percentage point and chromium ore grew by 14.1% and contributed 0.8 of a percentage point.
Financial services firm Investec says eight of the 12 categories included in the mining basket increased year-on-year in October. Iron-ore prices, in particular, have been supported by expectations of record-high steel exports and a temporary pickup in Chinese steel production despite a prolonged downturn in the property sector.
In respect of platinum, Investec says platinum prices were 60% higher year-on-year in October, supported by tight supply conditions.
In turn, seasonally adjusted mining production increased by 2.1% in October compared with September. This followed month-on-month changes of 2.6% in September and -1% in August.
Seasonally adjusted mining production increased by 2.3% in the three months ended October 31, compared with the previous three months.
The largest positive contributors were: PGMs, which grew by 4.1% and contributed 1.1 percentage points, iron-ore, which grew by 3.2% and contributed 0.5 of a percentage point, as well as manganese ore, which grew by 5.7% and contributed 0.4 of a percentage point.
In respect of sales, mineral sales at current prices increased by 13.3% year-on-year in October, with the largest contributors having been PGMs, chromium ore and gold.
PGM sales increased by 50.6%, contributing 11.2 percentage points to the headline figure; chromium ore sales increased by 26.6% and contributed two percentage points; and gold sales grew by 4.6% and contributed one percentage point.
The largest negative contributor was coal, with sales having contracted by 6.4% and contributing -1.6 percentage points.
Seasonally adjusted mineral sales at current prices decreased by 1% in October compared with September. This followed month-on-month changes of 8.1% in September and -2.8% in August.
Seasonally adjusted mineral sales at current prices increased by 6.6% in the three months ended October 31, compared with the previous three months.
Investec says the mining sector continues to face a number of key challenges, including increasing input costs that weigh on the sector’s competitiveness. Edited by Chanel de Bruyn
