Mining production marginally contracts in August, dragged down by Platinum Group Metals

Mining production marginally contracted by 0.2% year-on-year in August after expanding by an upwardly revised 5.1% in July.

The outcome was weaker than market expectations. Stats SA (Statistics South Africa) released the latest mining data today.

The principal survey statistician at Stats SA, Juan-Pierre Terblanche, said production was dragged lower mainly by Platinum Group Metals.

Terblanche noted that several other commodities also contributed to the decline. "Nickel, copper, gold, manganese ore and chromium ore also recorded a weaker month. On the positive side, the industry produced more diamonds, coal and iron ore," he said.

Terblanche said of these positive contributors - coal added 0.8% to the overall output.

He added that the month-on-month data also showed a downturn. "On a month-on-month basis, production declined for the first time in six months, declining 1.2% in August compared with July."