/ 6 July 2004

South African mining output soars

South African mining production for the three months to the end of May 2004 soared by 8,1% year-on-year (y/y) and was up by 2,6%, after seasonal adjustment, compared with the previous three months, Statistics South Africa (Stats SA) said on Tuesday.

Mining production growth is accelerating with May’s y/y rise at 8,9% compared with 7,2% y/y for the first five months. May’s rise was due to a 12,2% y/y increase in non-gold mining production, while gold output slipped by 4,4% y/y.

The quarterly increase was due to a seasonally adjusted increase of 3,1% in the production of non-gold minerals and a 0,7% rise in the production of gold during the three months ended in May 2004 compared with the previous three months.

The seasonally adjusted increase of 3,1% in the production of non-gold minerals was mainly due to an increase in the production of platinum group metals by 2,6%, iron ore by 0,2% and building materials by 0,2%.

Minerals sales during April 2004 were R9,792-billion, up 5,7% from April 2003. On a seasonally adjusted basis, total mineral sales were R10,334-billion, up 0,5% from March 2004.

On May 25, Stats SA said that real value added in mining only grew by 3,6% y/y in the first quarter of 2004. — I-Net Bridge