Johannesburg - Mining production has shown its first increase since July 2008, Statistics SA said on Thursday.

The index of total mining production was 7.7% higher in January 2010 compared with January 2009, the Pretoria-based agency said.

The 7.7% increase followed decreases of 2.3% in December 2009 and 2.2% in November 2009.

"This is the first positive annual growth since July 2008."

Total mining production for the three months ended January 2010, after seasonal adjustment, increased 3.3 percent compared with the previous three months.

Production of platinum group metals was the main contributor (contributing 3.6 percentage points), while iron ore contributed one percentage point to the 3.3% increase.

Actual estimated total mining production for the three months ended January 2010 increased 0.6% compared with the three months ended January 2009.

Turning to mineral sales, Statistics SA said the total value of mineral sales was 22.7% lower in 2009 compared with 2008, following increases of 34% in 2008 and 15.9% in 2007.

"The major contributors to the annual decrease of 22.7 percent in 2009 were platinum group metals (contributing -11.2 percentage points), coal (contributing -5.4 percentage points) and manganese ore (contributing -3.9 percentage points).

However, the value of iron ore and gold sales increased in 2009 and contributed 1.6 percentage points and 0.9 of a percentage point respectively to the annual 22.7% decrease, Statistics SA said.

The total seasonally adjusted value of mineral sales at current prices for the fourth quarter 2009 reflected an increase of 2.4% compared with the previous quarter.

The increase of 2.4% (R1392.4m) was mainly due to increases in the sales value of platinum group metals (contributing 2.1 percentage points), manganese ore (contributing two percentage points) and gold (contributing 1.4 percentage points).

- Sapa