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Mine workers stand underground at Gold Fields’ South Deep mine, south-west of Johannesburg, South Africa.
Production in the mining sector has eased to an annualised 1.4% in October, down from an increase of 4.9% in the previous month.
Analysts say the sector continues to struggle despite the absence of load shedding for several months.
On a monthly basis, mining production decreased by 3% in October following a 4.5% increase in September.
On the other hand, manufacturing activity increased by 0.8% in October compared to 2.6% in the same period last year.
An ETM Analytics Laura Campbell notes that the sector remains under pressure despite the disappearance of load-shedding incidents.
“Mining production growth declined to 1,4% year-on-year in October, from 4,9% in September 2023 what we’re looking at in the broader trend is that mining production remains significantly lower compared to historic levels. Despite ending load-shedding in the economy for nearly nine months, the industry is still to see significant recovery.”
#ZAMining || Mining production increased by 1,4% y/y in October, with platinum group metals and chromium ore driving much of the upward momentum.
Listen here for more: #StatsSA #GovZAUpdates pic.twitter.com/4m4NbvnUky
— Stats SA (@StatsSA) December 10, 2024
Positive contributions to manufacturing production came from petroleum, food and beverages as well as basic iron and steel among others. However, negative contributions came from the motor vehicles, parts and accessories and other transport equipment divisions.
Director of Industry Statistics Nicolai Classen says, “Other divisions that experienced a positive month include furniture and other manufacturing, electrical machinery, food and beverages, metals and machinery, glass and non-metallic mineral products and wood, paper and publishing. Three divisions recorded bigger production figures. The automotive division recorded 16,6% year-on-year.”
Stats SA notes that 5 out of 10 manufacturing divisions reported positive growth rates in October. On a month-on-month basis manufacturing production increased by 0,4% in October 2024 compared with September 2024.
