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SA mining output claws back some losses

21st October 2016

By: Anine Kilian

Contributing Editor Online

  

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Although there was an encouraging modest improvement in mining activity in August, the mining sector continues to face significant pressures amid depressed commodity prices, persistent domestic regulatory uncertainty and low productivity, BNP Paribas Cadiz Securities South Africa economist Jeffrey Schultz said last week.

Statistics South Africa (Stats SA) revealed that headline mining production contracted by 0.2% year-on-year in August, compared with a 5.4% contraction in July.

“On a seasonally adjusted month-on-month basis, production grew 2.5%, reversing a similar fall in the prior month,” Schultz said.

The major contributors to the 2.5% rise in mining activity in August came from an 11.7% rise in iron-ore production, with an 8.5% month-on-month bounce in platinum-group metals production.

The largest negative month-on-month contributions came from a 7% decline in gold production and a 3.8% decrease in coal production.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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