Mining production grew 2.4% in January, more than double the figure expected

Photo: Sibanye

Statistics SA reported that it had revised December's figure from the originally reported nearly flat growth of 0.1% to a contraction of 0.5%.

Though the economists' consensus was 1% growth, Investec expected mining to grow up to 5% while macro-economics website Trading Economics projected mining output of 4.4%. "Lower statistical base factors in January 2017 account for some of the forecast lift," Investec economist Laura Hodes said.

However, FNB chief economist Mamello Matikinca said, "We think any meaningful bounce-back in January is unlikely, given the strengthening of the currency and several mine stoppages, which could have affected production volumes."

In current rand, total mining sales in January amounted to R34.6bn, down from December's R41bn, which, in turn, was down from R42bn in November.

Total mining sales in January were 4.5% higher than the R33bn recorded in January 2017.

The main positive contributors to the growth in January's mining production index were iron ore, which jumped 25.1%, contributing 3.4 percentage points, and "other" non-metallic minerals, which grew 27.1%, contributing 1.3 percentage points.

Platinum group metals (PGMs) suffered a 13.6% decline in output, contributing -2.9 percentage points, while gold production fell 7.7%, contributing -1.1 percentage points.

Gold, contributing -1.5 percentage points, was the largest negative contributor.