South Africa’s mining output surges 18.8% y/y in March on strong PGM rebound

By bne IntelliNews May 14, 2015

South Africa’s mining output surged 18.8% y/y in March after a revised 7.8% growth the month before, driven up by a more than double increase on the production of the PGM (platinum group metals) sector, which was hit by a strike during the first five months of last year, preliminary data from Statistics South Africa showed.

Production of PGMs soared 132% y/y in March, speeding from a 26.7% y/y growth in March. The sector, which has a 19% weight in the index, contributed 13.1pp to the overall output development (2.8pp in February).

Of the other major mining sectors, performance improved also in the coal (26.5% weight) and gold (21.1% weight) industries, while it deteriorated in the iron ore (14.5% weight) sector.

Coal was the second biggest positive contributor (2.5pp) to the overall development, as output rose 9% y/y in March after a 2.9% y/y growth in February (contribution of +0.8pp).

Gold output grew 3.3% y/y in March, reversing a 7% contraction in February, and contributed 0.6pp versus -1.3pp in February.

Growth in iron ore output slowed significantly in March – to 3.5% from 21.8%, so its contribution declined to 0.7pp from 4pp in February.

On a seasonally adjusted monthly comparison basis, the country’s mining output rose 7.1% in March, following a revised 4.0% increase in February.

The seasonally adjusted mining output for Q1 grew 1.9% q/q, mainly due to a 24.3% rise in PGM output.

South Africa is the world's biggest supplier of platinum and a major gold producer. Mining directly accounts for about 6% of the country's GDP and for some 18% indirectly. It is also responsible for about 60% of the country’s export revenues. The sector has a significant impact over other parts of the economy and its performance is a major indicator of economic growth prospects.

Related Articles

UK’s Vedanta Resources to invest $1bn in Zambian copper mine

The UK-listed diversified resource and mining company Vedanta Resources will invest $1bn in its Zambian mining unit Konkola Copper Mines (KCM), creating 7,000 jobs, the mining firm said in a ... more

Almaty cost of living lowest among major cities

Kazakhstan’s largest city and business centre Almaty has dropped to last place on the Economist Intelligence Unit’s bi-annual ranking of the ... more

AB InBev sells 54.5% stake in African Coke bottling business for $3.15bn

Anheuser-Busch InBev will sell a 54.5% stake in Africa's largest Coke bottler to Coca-Cola Company for $3.15bn, the two companies said in a joint statement on December 21. The deal is expected to ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss