/ 19 June 2008

Mining production down

The total mining production for the three months ended April 2008, after seasonal adjustment, decreased by 4,1% compared with the previous three months, Statistics South Africa (Stats SA) said on Thursday.

The decrease of 4,1% was a result of the decrease of 5,5% in the production of gold and a drop of 3,9% in the production of non-gold minerals.

The major contributors to the decrease of 4,1% were platinum group metals (PGMs, -3,7 percentage points), diamonds (-0,8 of a percentage point) and gold (-0,7 of a percentage point), Stats SA said.

However, coal contributed positively (1,3 percentage points) to the 4,1% decrease.

The total mining production for the three months ended April 2008 decreased by 9% compared with the three months ended April 2007.

The actual total mining production for April 2008 decreased by 2% compared with April 2007.

Gold production decreased by 10,1% in April 2008 compared with April 2007, Stats SA said.

Countrywide power cuts in January this year forced the mining sector in South Africa to shut its large mines for five days, which curbed output.

At present, mines are receiving only a 90% to 95% supply of power.

Mining makes up about 5,4% of the country’s GDP. — Sapa