JOHANNESBURG - Mining production continued on its downward trajectory in August, slipping even further by 9.1 percent year-on-year following July's 4.1 percent decline, Statistics South Africa (StatsSA) said on Thursday.
The major contributors in the August decline in mining were iron ore which fell 19.9 percent, gold at a 15.5 percent decline, and platinum group metals which declined seven percent.
Seasonally adjusted mining production decreased by 1.2 percent in August 2018 compared with July 2018.
Investec economist Lara Hodes said the decline in mining production was notably above market expectations of a four percent year-on-year fall.
"A disaggregation of August's data, reveals that the decline in production was generally broad-based, with ten of the twelve mineral groups falling, however the iron ore, gold and PGM sectors were chiefly responsible for the marked fall," Hodes said.
"Base effects from last quarter’s lift, coupled with waning commodity prices as indicated by the Economist base metals index, have weighed on production of late. This has been exacerbated by global supply dynamics, and diminishing sentiment, dragged down by fears of mounting trade and geopolitical tensions.
Hodes said the the newly gazetted mining charter, version three, was seen as a workable compromise, creating a degree of regulatory and policy certainty.
- African News Agency (ANA)