South Africa Mining Output Accelerates

Mining output growth accelerated to 6.5% in November from 5.2% in October, surprising economists who had expected it to slow, BusinessLive reported. The two consecutive months of growth marked a rebound from a 0.9% annual contraction in September, Statistics SA reported on Tuesday. The biggest positive contributors were platinum group metals, which contributed 2.8 percentage points; iron ore, 2.5 percentage points; and coal, 2.1 percentage points, while gold was a significant negative contributor, at -1.3 percentage points. Seasonally adjusted mining production decreased by 0.7% in November 2017 compared with October. First National Bank economist Mamello Matikinca expected a slight reversal in output relative to October’s print, despite global appetite for iron ore and coal remaining robust, and a very low November 2016 base. Investec economist Kamilla Kaplan explained that growth in the mining sector has been aided by higher commodity prices, relative to decade lows reached in early 2016, adding, “The rise in commodity prices is linked to stronger industrial demand and mine supply constraints.”