PGM production in South Africa increased by 25.9 per cent on a year-on-year basis during March, according to new figures released on Wednesday (12th May).

The improvement contributed to total mineral output in the country rising by 11 per cent, following on from jumps of 9.5 per cent and 6.6 per cent in January and February respectively.

In addition, Statistics South Africa confirmed that mineral sales increased by 6.3 per cent for the three months to February, with pgm sales being boosted by 7.5 per cent.

Kgotso Radira, an economist at Investec, explained that the successful first quarter for mining companies was backed up by a global build-up in inventories.

"Industrial demand is a key driver of production growth but jewellery demand is still fragile as households' finances are under pressure globally," he told Mining Weekly.

"The mining and manufacturing data shows that the production side made a notable contribution to gross domestic product growth in the quarter."

South Africa is the world's largest producer of platinum, accounting for over three-quarters of supplies of the precious metal.

Sources:

SA mining output rises 11%, fastest pace in 6 years (13/05/10)

South African Mining Production Rose For 3rd Month In March (12/05/10)

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