Strikes and Eskom blamed for shrinking mining production
Mining fell by 5.6% despite economists' expectations of a 0.2% slump
The mining sector took a knock in November with a larger-than-expected contraction. Analysts said the reversal in the sector was largely due to protests at some gold mines since mid-November and intermittent load-shedding by Eskom towards the end of 2018. Mining production decreased 5.6% year on year in November, data from Statistics SA showed on Tuesday. This comes after three months of declining mining production was halted in October, with surprise annual growth of 0.5%. The Bloomberg economists' consensus was a 0.1% decline. “Overall, it’s not a good story,” Minerals Council chief economist Henk Langenhoven said. The sector also faces headwinds from a potential escalation in global trade tensions between the two largest economies and a slowing global economy, particularly with sluggish growth expected in China. Exports of resources remain a key driver of economic growth in SA. "A further slowdown in commodity prices would negatively affect both the rand and economic growth," Inv...
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