South African mining production continues to grow in 2017

South African mining production continues to grow in 2017

South African mining production grew strongly in Q1 2017 according to the latest report from the South African Chamber of Mines.

Based on data released by Statistics South Africa, mining production showed March growth was up nearly 4% compared to figures for February.

The total numbers for Q1 show the sector continuing to recover, with production increasing nearly 6% on the same period in 2016.

“Whereas the sector’s production declined by 5% in 2016 on 2015, the latest improved performance shows that mining only contracted by 1% on an annualised basis,” said Chamber of Mines chief economist Henk Langenhoven.

He added that it was encouraging news for South African miners particularly as production in the month of March was 11% better than a year ago.

The strongest performances in terms of commodities was led by diamonds (up 23% in March compared to February), manganese (up 14%), nickel (up 11%) and chrome (up 10%) while only the production of building materials and copper fell.

“A great deal of recovery is still needed when the production performances of the different commodities are evaluated for their annual performance. Compared to a year ago, nickel (down 17.0%), gold (down 5.4%), copper (down 5%) and manganese (down 4.5%) need the most production improvement to outperform 2016 levels,” explained Langenhoven.

@RGNonline