Pgm production declined by 4.6 per cent in South Africa during the third quarter of 2009, it was confirmed yesterday (12th November).

According to new figures from Statistics South Africa, the pgm sector was the biggest contributor to the overall decline of 7.5 per cent in the country's mining output.

In addition, pgm production slumped by 38.9 per cent in September, largely due to strike action at Impala Platinum's lease area at the Rustenburg mine during the month.

The body also confirmed that a number of other pay disputes and mining accidents in August and September played a major role in the sizable decline in output.

Major specialist banking group Investec stated that the outlook for the country's mining sector remains uncertain as it is closely intertwined with the pace of economic recovery.

"We only expect a recovery in the sector in the latter part of the first half of 2010 and for it to gain momentum in 2011," it said in a statement quoted by Mining Weekly.

The statistics also showed that total mining production in South Africa fell by 15.9 per cent in September, while quarterly output was down by 1.8 per cent after seasonal adjustment.

In addition, the seasonally-adjusted value of mineral sales at current prices from Q2 to Q3 was 4.4 per cent, with pgms again taking the brunt with a sales drop of 12.8 per cent.

South Africa is the world's largest producer of platinum and accounted for about 76 per cent of global production last year, according to leading refiner Johnson Matthey.

Sources:

SA's Q3 mining output drops (12/11/09)

South African Mine Output Slumped 15.9% in September (Update1) (12/11/09)

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