Latest statistics indicate that South Africa’s mining production decreased 1.1% year-on-year in March, after plummeting to a revised 8.1% in February.
According to Statistics SA, that is its lowest level in three years and the fifth consecutive contraction for the sector.
In recent months, production has been hard hit by strikes at gold mines led by the Association of Mineworkers and Construction Union (AMCU). The sector has also been constrained by load-shedding, due to the power problem the country has been facing.
Seasonally adjusted mining production decreased by 3.4% in the first quarter of 2019 compared with the fourth quarter of 2018 – indicating that the sector will weigh on the GDP figure for the quarter.
The largest negative contributors in March compared to the year-earlier were gold, down 17.7%; other non-metallic minerals, down 8.1%; chromium ore, down 6.4%; and iron ore, down 1.6%.
Mining production increased by 3.8% in March when compared to February.
