Mining production plunges another 9% in August
The sector took another knock — far worse than analysts' expectations
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...
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