Mining production slumps 5% in July, despite expectations of an increase
After a pick-up in June, production in the mining sector fell in July, with the numbers far below economists’ consensus forecast. Mining production fell 5.2% in July year on year, with iron ore falling 17.4%, gold 15% and platinum group metals 5.8%. Seasonally adjusted mining fell 8.6% in July, which followed month-on-month falls of 5.4% in June and 5.3% in May. Economists had expected mining production to pick up in July, the first month of the third quarter, with the data further underscoring recent figures indicating that SA’s economic growth was failing to pick up as the year drew to a close, despite widespread expectations it would. SA’s mining sector has been battered by turbulence as a result of a trade war between the US and China, the latter a major importer of commodities. A falling platinum price as a result of reduced demand for diesel vehicles as well as a volatile rand, has also added to pressure on the sector. Domestic concerns, including policy uncertainty over the M...
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