SA’s min­ing pro­duc­tion ebb gets worse

The Star Early Edition - - BUSINESS REPORT -

THE DE­CLINE in South Africa’s an­nual min­ing pro­duc­tion deep­ened to 4.2 per­cent last Novem­ber from 2.6 per­cent last Oc­to­ber, sig­nalling that the min­ing sec­tor could make a neg­a­tive con­tri­bu­tion to 2016’s last quar­ter gross do­mes­tic prod­uct. On a sea­son­ally ad­justed ba­sis, min­ing dropped by 3.9 per­cent month on month in Novem­ber and by 1.5 per­cent for the three months to Novem­ber. Statis­tics SA said yes­ter­day that the main neg­a­tive con­trib­u­tors were plat­inum group me­tals and iron ore, which sub­tracted 1.1 per­cent and 1.6 per­cent­age points, re­spec­tively, from the quar­terly fig­ure. Ned­bank said: “The per­for­mance of min­ing pro­duc­tion should be sup­ported by the fore­cast lift in com­mod­ity prices in 2017. How­ever, global de­mand… is still sub­dued and con­di­tions in the do­mes­tic min­ing sec­tor re­main chal­leng­ing.” – Wise­man Khuzwayo

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