Production of platinum group metals (pgms) in South Africa fell significantly in October, sliding 27.3 per cent from the same month last year.

Overall mining output contracted by 12.7 per cent year-on-year, led by the drop in pgms, which make up the biggest slice of the country's mining industry.

The yearly drop in pgm output was accompanied by an 18.9 per cent fall in production from September, according to the data from Statistics South Africa.

A statement from Nedbank reported by Mining Weekly said: "The outlook for the mining sector remains weak, constrained by poor global growth prospects, as well as domestic constraints.

"The rand remains firm despite its recent bout of weakness and it is not likely to boost export competitiveness considerably, while logistical problems, particularly with transport and energy capacity continue to hurt the sector."

Stats SA also reported that overall mining production fell by 3.1 per cent during the three months to the end of October against the preceding quarter.

The main contributor to the decrease was pgms, which contributed 1.5 percentage points.

Source:

SA mining production falls 12.7% (08/11/11)

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