Mining output dips as sector faces renewed pressure from weak demand and rising costs

SOUTH Africa's mining industry recorded a slight setback in August, with production declining by 0.2% year-on-year, according to Statistics South Africa's (Stats SA) latest Mining Production and Sales report released last week.

- YOGASHEN PILLAY

The contraction, which fell short of market expectations, has sparked mixed reactions from economists and industry observers.

Stats SA said the biggest drags on output came from Platinum Group Metals (PGMs), gold, and manganese ore - down 3.0%, 3.6%, and 3.4% respectively - collectively subtracting 1.6 percentage points from overall production. "Coal was the largest positive contributor, rising by 4.1% and contributing 0.8 of the percentage point to overall growt," said Jean-Pierre Terblanche, principal service statistician at Stats SA.

Seasonally adjusted mining production fell for the first time in six months, decreasing by 1.2% month-on-month in August, following a 1.2% rise in July and a 0.3% increase in June.