JOHANNESBURG (miningweekly.com) – Overall mining production in South Africa increased by 12% year-on-year in December, rallying from the 5.2% growth in output posted in November despite endemic labour issues, which continue to stifle the sector.

In a mining production report released on Thursday, Statistics South African found that the stronger growth was largely the result of increased iron-ore production, which added 5.8 percentage points to the yearly increase.

This was followed by platinum-group metals (PGMs), which contributed 3.6 percentage points, and gold, which added 1.8 percentage points to overall growth figures.

The highest positive growth rates for the month were recorded for building materials (39.9%), iron-ore (32.3%), chromium ore (29.9%) and manganese ore (2.6%).

Total mining production in 2013 was 4% higher than that of the prior year, when a 3.2% decrease in output was posted, while, in 2011, mining production decreased by 0.9%.

Meanwhile, seasonally adjusted mining production increased by 4.3% in the fourth quarter of last year compared with the previous quarter, owing largely to a 4.3% increase in iron-ore, which contributed 3.3 percentage points.

SLOWING SALES

Looking to November, growth in mineral sales slowed to 7.9% from 16.9% in October, with the highest positive growth rates for the month recorded for “other” metallic minerals (76.6%), iron-ore (60.3%), nickel (37.9%) and chromium ore (34%). 

The November growth number was driven by increased sales of iron-ore, which contributed 6.8 percentage points, and PGMs, which contributed 4.8 percentage points, while pallid gold sales detracted 8 percentage points from the month’s tally.

On a monthly basis, seasonally adjusted mineral sales were down 2.7%, which
followed month-on-month changes of 3.3% in October and -8% in September.

Commenting on the production figures, the Nedbank Economic Unit stated that continued labour unrest in the sector, infrastructure constraints and lower growth in China would probably continue to have a negative impact on production.

As mining figures were volatile, the unit noted that they were likely to have “little influence on policy decisions in the short term”.