South Africa has increased its mineral production by 3.1 percent on the back of higher commodity prices, according to just released data by Statistics South Africa (StatsSA).
The figures show that mineral production in the country increased 3.1 percent year on year, and was up 0.9 percent month-on-month, with diamonds, iron ore, manganese ore and coal being the main contributors. Manganese and coal volumes, which grew by 24.3 percent and 3.9 percent year-on-year respectively, added a further two percentage points to the headline number, reported the African News agency.
Diamonds, which saw a 42.9 percent year-on-year surge in output, added two full percentage points and a 10.4 percent year-on-year jump in iron ore production added 1.5 percentage points, becoming primarily responsible for the better than anticipated print.
But the production of commodities, which make up 44 percent of mining output contracted, with gold down 7.1 percent year-on-year, copper 35.9 lower and platinum group metals 8.8 percent softer, while nickel and “other” metallic minerals both contracted by double digits on a year-on-year basis.
Reacting to the news, the South Africa Department of Mineral Resources (DMR) said the increase supported its view of a resurgence in the sector, following the rise in commodity prices, which supported increased market capitalisation as well as increased exploration activities, among others.
The department said the work underway to finalize the MiningCharter, the Mineral and Petroleum Resources Development Amendment (MPRDA) Bill and the Vision 2030 for the sector was expected to entrench investor confidence in the sector and bodes well for the further growth and development of the industry, reports the ANA.