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Tuesday, 13 February 2024 15:47

Mining production surges slightly in the fourth quarter.

By Lehlohonolo Lehana.

The latest data from the Minerals Council South Africa is showing that the mining sector's contribution to the country's GDP crashed 12% over the year due to the electricity and logistics crises.

However, data published by StatsSA has shown that the industry saw marginal but evident growth in certain areas for December 2023.

Platinum group metals, manganese ore and chromium ore were the largest contributors to the sector's growth.

Mining production in the country increased by 0.6% in December 2023 compared with December 2022 – a marginal improvement but below the prediction of a 4.9% increase.

Principal survey statistician Juan-Pierre Terblanche said, "Total mining production was 0,4% lower in 2023 compared with 2022. The 0,4% decrease in annual mining production followed a decrease of 7,2% in 2022 and an increase of 12,7% in 2021. Seasonally adjusted mining production decreased by 4,2% in December 2023 compared with November 2023. This followed month-on-month changes of 2,7% in November 2023 and 2,0% in October 2023."

Mineral sales at current prices increased by 9,2% year-on-year in December 2023.

Terblanche said the largest positive contributors were gold, iron ore and chromium ore.  

"Total mineral sales at current prices were 10,3% lower in 2023 compared with 2022. The 10,3% decrease in annual mineral sales followed increases of 3,1% in 2022 and 39,8% in 2021."

"Seasonally adjusted mineral sales at current prices increased by 4,2% in December 2023 compared with November 2023. This followed month-on-month changes of 2,9% in November 2023 and 13,3% in October 2023. Mineral sales at current prices increased by 16,8% in the fourth quarter of 2023 compared with the third quarter of 2023."

The Mineral Council of South Africa said that "a stable, aligned and consistent regulatory environment with efficient administration is essential to attract and retain investments in exploration, mine development, and mining."