JOHANNESBURG - The mining and quarrying sector contribution to the gross domestic product (GDP) bode well for the sector and indicated a commodity boom may be imminent, Mineral Resources Minister, Gwede Mantashe, said on Tuesday.
Statistics South Africa said on Tuesday that mining and quarrying industry increased by 4.9 percent and contributed a positive 0.4 percentage points to GDP, led by mining of metal ores including platinum group metals, copper and nickel.
This was despite South Africa's economy slipping into a technical recession after contracting by 0.7 percent in the second quarter of the year, following a revised 2.6 percent shrinkage in the first quarter.
In a statement, Mantashe said the increase in mining contribution to the GDP was a good indicator for the sector against the background of recently-announced retrenchments and a decline in gold prices and demand for platinum.
As one of the leading mineral exporting countries, South Africa has been negatively affected by global economic factors and as a result, the mining industry experienced a decline in performance over the recent years.