Mining production under pressure

Johannesburg - South Africa's gold production in June 2009 was 12.2% lower than in June last year, while the country's total mining production for June fell 7.3% year on year, Statistics South Africa reported on Thursday.

Non-gold production dipped 6.4% in June this year when compared with last year's June production figures.

Total mining production for the second quarter of 2009 decreased by 10.7% compared with the second quarter of 2008 while total mining production for the second quarter of 2009, after seasonal adjustment, increased by 4.5% compared with the previous quarter.

Statistics South Africa said platinum group metal (PGM) production was the main contributor (4.0 percentage points) to this increase.

According to the latest mining production and sales data, total mineral sales decreased by 33.1% to R17.9bn in May 2009 when compared with the same month last year.

While gold sales at R3.9bn were up 3.5% year-on-year in May, non-gold sales tumbled 39% to R14bn in May.

The total seasonally adjusted value of mineral sales at current prices for the three months ended May 2009 reflected a decrease of 0.8% compared with the previous three months.

This decrease was a result of a decrease of 2.5% in the sale of non-gold minerals.

The actual estimated total value of mineral sales at current prices for the three months ended May 2009 decreased by 24.1% compared with the three months to end May 2008.

Statistics South Africa said major contributors to this decrease were PGMs, manganese ore, coal and other non-metallic minerals.

The two minerals that made substantial positive contributions to the change were iron ore and gold.

- I-Net Bridge