Economists said yesterday that the recovery of productivity and activity across South Africas mining sector was expected to remain moderate given the ongoing inefficiencies in port, rail and water supply sectors.
Latest data from Statistics South Africa (StatsSA) yesterday showed mining activity slumping by 1.4% on a year-on-year basis in July although mineral sales for the same month increased by 24.5%.
Iron ore recorded the biggest slump at a negative 19% while other metallic minerals shed 36.2%. Gold output was 3.5% weaker despite higher bullion prices although manganese ore production rebounded by 27%, in addition to a 23% firmer in output of chromium ore.
South Africas mining activity for July also decreased by 0.9% compared to June output, following month on month of -1.7% in June and -0.9% in May.
Thanda Sithole, senior economist with FNB, said yesterday that the recovery in SAs mining sector activity was likely to remain sluggish in the short term outlook.
