South Africa’s mining sector lost momentum in May, with production contracting after two months of strong growth.
Mining production fell by 5.4% year-on-year in May, reversing April’s 8% increase.
Statistics South Africa (Stats SA) said lower output from iron ore, coal and Platinum Group Metals (PGM) weighed on the sector, even as mineral sales remained firmly in positive territory.
Stats SA said the three commodities, iron ore production followed by coal and PGM, accounted for most of the overall decline in mining output.
On a seasonally adjusted basis, mining production was down 5.2% from April, while output over the three months to May fell 1.7% compared with the previous three-month period.
Despite weaker production, mineral sales increased 13.9% from a year earlier, supported by a 70.5% surge in PGM sales, along with gains in gold and coal. However, a sharp decline in iron ore sales offset some of those gains.
While demand and prices continue to support mining revenues, production challenges continue to weigh on one of South Africa’s key export industries.
Never miss a major story. Get breaking news and the latest developments from South Africa and beyond as they happen.
Trending News
- 4 hours ago
- 5 hours ago
- 5 hours ago
- 6 hours ago
- 7 hours ago
- 7 hours ago
- 9 hours ago
- 9 hours ago
- 9 hours ago
- 10 hours ago
- 10 hours ago
More in Business
Manufacturing Indaba: SA’s efforts to grow economy spotlighted
Diamond mining giant De Beers shutdown in Venetia could bleed 4k jobs
PIC suspends CEO Patrick Dlamini in face of impropriety probe
- Public Investment Corporation (PIC)
