Mining sector shows signs of recovery with significant rise in iron ore output

MINING activity in South Africa rebounded slightly in May and ended a six-month streak of contraction, buoyed by a double-digit production expansion of iron ore.

- SIPHELELE DLUDLA

Data from Statistics South Africa (Stats SA) on Tuesday revealed that mining production rose by 0.2% year-on-year in May, rebounding slightly after a sharp 7.7% decline in April.

Stats SA’s principal service statistician, Jean-Pierre Terblanche, said the rise was mainly driven by iron ore, which expanded by 12.5%, adding 1.7 percentage points to overall mining growth.

The increase in platinum group metals (PGMs) output in May is more a base effect, following production disruptions in April.

Moreover, gold, chromium ore, nickel and other metallic minerals added a further 0.8 of a percentage point (combined) to the headline number.