South African gold output rose by 1,3% year-on-year in May, the first increase in in nine months, while overall mining production rose by 0,8%, official data showed on Thursday.
Gold output in South Africa, the world’s largest producer of the precious metal, showed an increase in volume terms for the first time since August 2006, according to data from Statistics South Africa.
Gold output slid by 8,2% in April.
Gold production in South African has been on a downward slope, tumbling by over 50% over the past decade, as high-grade mines run out of ore and firms grapple with more difficult and high-cost underground operations.
In 2006, gold production fell 7,5% to the lowest levels since 1922, the Chamber of Mines has said.
Statistics South Africa did not give any reason for the increase in May gold output, but a chamber official told Reuters in March that higher gold prices and increased capital spending on mines was expected to slow or possibly halt the decline this year.
The volume of non-gold minerals output rose by 0,8% in May and overall minerals production also increased by 0,8%, a statement on www.statssa.gov.za said.
Despite the marginal increases in production, a boom in commodity prices and a weaker rand has lead to sharply higher income from South Africa’s mines.
In April year-on-year gold sales rose 30,1% to R2,852-billion ($406,3-million), sales of non-gold minerals shot up by 40,8% to R15,28-billion and total mineral sales gained 39% to R18,13-billion, it added. Sales figures are reported one month later than production figures. – Reuters