MINING
Recovery in commodity prices keeps sector’s growth going
But economists warn that longer-term trends and policy uncertainly give cause for concern
Mining recorded growth in November, continuing a trend that has been aided by a recovery in commodity prices. Mining production rose 6.5% year on year in November after a 5.2% year-on-year increase in October. It had contracted 0.9% year on year in September. The November figures came off a low base. But Chamber of Mines economist Henk Langenhoven said on Tuesday that the delayed response to the commodity price improvement had led to it lasting longer than expected and would result in stronger growth in the sector. The higher commodity prices had been linked to stronger industrial demand and mine supply constraints, Investec economist Kamilla Kaplan said. But Nedbank economist Busisiwe Radebe said: “Even though the November production number shows a relatively solid increase, the longer-term prospects for the industry remain less certain due to the difficult operating environment and policy uncertainty.” On a seasonally adjusted basis, declines were reported on a monthly basis, as w...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.