CLOSE X
Advertisement

Mining volumes jump

Economy

Johannesburg – Figures released by Statistics SA show that mining volumes jumped 4.6 percent year-on-year in February.

This was from the 1.4 percent year-on-year gain seen in January – which is typically a lower month due to the annual holiday season – the numbers showed on Thursday.

Share this story
AP Photo/Petr David Josek

Production was up 2.9 percent month-on-month but remains negative on a quarterly basis, the stats show.

Despite gold output falling 16.8 percent year-on-year, and coal being down 9.4 percent, iron ore (+20.9 percent), manganese (+15.7 percent) and PGM  (47.2 percent) production rose sharply, more than offsetting an overall decline, FNB Senior Industrial Economist Jason Muscat notes.

Muscat notes the increase is welcome news in a week that has seen poor manufacturing and retail trade sales data.

“Our view remains that better global growth (particularly a stabilisation in China and infrastructure plans in the US) will continue to buoy commodity prices and support production levels in the mining sector.

Read also: Are we heading for a recession?

“Furthermore, the cessation of the drought this year should also provide good growth to the agriculture sector, with the overall primary sector contributing positively to gross domestic product.”

BUSINESS REPORT ONLINE

Share this story
Advertisement
X