SA’s mining output declined nearly 2% in September year on year, suggesting a tepid demand for commodities but also lingering bottlenecks on the country’s railway network that holds back miners from delivering goods to the market efficiently.
Mining production fell 1.9% in September, compared with the same period a year ago, Statistics SA said in a statement on Thursday. In August, mining production fell 2% year on year.
Diamonds, other metallic minerals and manganese more than offset the positive contribution from the platinum group metals, the agency said.
Mining output dropped a modest 0.3% month on month, after rising 1.2% in August.
While load curtailment has eased in line with improved energy availability factor, the outlook in the mining industry is still blighted by inefficient rail network that that forced major players like Kumba Iron Ore to stockpile its stocks on the mines
State utility Transnet’s capacity to deliver services is being hampered by vandalism of its infrastructure, as well as the shortage of spare parts for idle locomotive, among the factors.
Meanwhile, demand for commodities was still patchy as reflected in the underlying metal prices.
Mineral sales declined by 20.2% year on year in September, dragged down by coal, gold and PGMs.
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