Platinum group metals lead South African mining output decline

12 June 2013

 

Output of platinum group metals (pgms) in South Africa fell sharply in April, according to latest figures.Statistics South Africa said Tuesday (June 11th) that pgm production fell 13.4% in April from the same month in 2012.March had posted a year-on-year gain of 1.8%, though this increase was attributable to the effects of strike action during the same month last year.The drop in pgm output led to a 0.4% decline in overall mining production in April, dragged down also by a fall in gold output and 'other metallic elements'.

 

Platinum group elements contributed 2.8 percentage points to the overall drop in output.Seasonally adjusted mining production decreased by 1.5% in the three months ending April 2013, compared with the previous three months, with pgms contributing 0.8 of a percentage point to the decline.For March, pgm sales were up 35% from the same month a year before, helping overall mineral sales to rise 10.5%.Despite this, it seems the prospects for South Africa's platinum and other miners are not promising."Poor global growth, generally weak commodity prices and difficult operating conditions in the local mining industry will continue to undermine the performance of mining production in the months ahead," Nedbank said in a note.

 

Sources: http://www.platinum.matthey.com