The mining sector received another blow in August, falling far more than anticipated by economists. Statistics SA reported on Thursday that mining production fell 9.1% year-on-year in August after a contraction of 5.2% in July. A Bloomberg poll of economists had expected a 4% contraction. The sector was dragged down by iron ore (-19.9% and contributing -2.6 percentage points); gold (-15.5% and contributing -2.2 percentage points); and platinum-group metals (-7.0% and contributing -1.7 percentage points). Compared to the month before, mining production fell 1.2% in August following month-on-month changes of -8.3% in July, and increase of 5.1% in June. Meanwhile, mineral sales increased by 4.3% in August. The increase was driven by manganese ore (47.2% and contributing 2.7 percentage points); coal (7.3% and contributing two percentage points); and “other” metallic minerals (86.5% and contributing one percentage point). Despite the country falling into a recession for the first time in...

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.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.