Mining output in South Africa rose sharply in May off the back of a big increase in the production of platinum group metals (pgms), manganese and diamonds.

Total mining production rose 9.6 per cent year-on-year in May, boosted by a 20.5 per cent increase in pgm output, according to figures released today (July 14th) by Statistics South Africa.

For the period between March and May, pgm output slipped back on the previous quarter by 0.7 per cent. However, the value of pgm sales rose 0.8 per cent over the same three-month timescale.

The pace of growth across the whole mining industry in South Africa has slowed since April, with total output slipping 5.9 per cent over the month.

For the three months to April, the actual value of mineral sales at current prices increased by 28 per cent when compared with the three months in 2010. Pgms added 6.7 percentage points to this increase.

Nedbank said the outlook for the mining sector had deteriorated because of the strong rand and a slowdown in global demand.

It also reported that labour disputes could threaten the industry, with unions indicating there could be action in the platinum, gold and coal sectors.

"Some moderation in mining output could be experienced during the second half of the year due to a high base established in 2010 and some loss in growth momentum internationally," Nedbank said.

Sources:

Manganese, diamonds and PGMs lift SA mining output (14/07/11)


May mining production up 9.6% (14/07/11)

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