SA Mining Output Up After Two Yeas of Decline
Source: Mining Weekly, Loni Prinsloo (2/10/11)
"Report showed a 6.5% jump in yearly output."
Statistics South Africa's (Stats SA's) mining production report showed a 6.5% jump in yearly output, following decreases of 6.6% in 2009 and 5.6% in 2008. Mining production in December 2010 jumped by 12.2%, compared with the same month in 2009. Investec mining analyst William Black said that the country's mining industry had taken a knock in previous years, mainly owing to companies having to curtail output after State-owned utility Eskom was unable to supply enough electricity in 2008, and many miners also reduced production as the global economic meltdown weakened demand.
Stats SA reported that fourth-quarter output rose by 3.9%, compared with the third quarter. All twelve mineral groups and minerals contributed positively to the increase, with platinum-group metals (PGMs) and coal being the main contributors.
Cadiz analyst Kim Silberman said that an increase in demand, strong commodity prices and a significant drop in mining inflation in recent months supported the production growth.
The value of commodity sales increased by more than 34% year-on-year in November.