South Africa's mining production rebounded in the final three months of last year, a positive sign for an industry that was forecast to see overall output decline on an annualized basis in 2023.
Production rose 2.5% in the fourth quarter, after falling 0.9% in the previous quarter, according to data released by Statistics South Africa on Tuesday.
Production rose only 0.6% in December from a year earlier, well below the 4.9% median estimate of five economists surveyed by Bloomberg. The biggest positive factors were platinum group metals, coal, and chromium ore. Gold production decreased by 3.4%.
advertisement
Continue reading below
Total mining production in 2023 decreased by 0.4% compared to the previous year.
The relatively positive data for the three months to December is a positive sign for a sector that has endured the weight of major operational woes due to mixed commodity prices, strike activity, and logistics and energy supply constraints.
Minerals Council of South Africa CEO Mzila Mtenjene said in a statement last week that the mining industry had suffered “unprecedented power cuts, weakened railways and ports, and rampant criminal activity” in the last year, and the sector pointed out that its direct contribution to gross profit has declined. Domestic products will increase from 7.3% to 6.2%.
The advocacy group added that trucks were used to transport an estimated 26 million tonnes of coal to various ports due to logistical issues. This is the highest level of road transport in this sector to date. Overall mining exports fell by 11%, he said.
Separate data last week showed that manufacturing, which is more than twice as large a share of the economy as mining, saw production decline in the fourth quarter after a sharper-than-expected slump in December offset gains in the previous two months. increased by just 0.1%.
© 2024 Bloomberg