SOUTH African mining production increased 2.8% in June, representing the first time in four months annual production has improved year-on-year, said Fin24 citing data published by Statistics South Africa.
The largest contributor to the increase was platinum group metals (PGM) production which was 28.2% stronger whilst gold production fell 19.2% in the month.
From a mineral sales perspective, coal sales were 20.7% stronger, but PGMs were again the dominant force increasing 32.2% in the month. Overall mineral sales from South Africa were 9% higher in June year-on-year.
Annabel Bishop of Investec said in a note on Tuesday afternoon that while the rise in production of PGMs had helped boost overall production, gold’s performance was “dismal”, and activity in the local mining sector remained suppressed.
“Commodity prices have suffered of late amid geopolitical concerns and rising trade tensions which have reinforced investor concerns over global growth, threatening demand. This coupled with a combination of other factors, including declining productivity and escalating costs have suppressed activity in the mining sector,” she said.
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