Mining production declined in May

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Mining production declined in May
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Mining production fell 29.8% year-on-year in May, according to Stats SA, but far less than in April

Annual mining output declined in May, though not at the record-breaking pace reported in the previous month, as SA moved into lockdown level 4 and more operations returned to production.April’s fall, worse than previously reported at a revised -50.3%, was the worst on record since the agency began the series in 1980.

On a month-on-month, seasonally adjusted basis, mining production rose 44% from the previous month’s decline of a revised 36.8%opencast mining operations permitted to scale up to full employment, while other mining operations were permitted to start up in batches and move towards 50% employment. Certain operations, such as collieries that supply Eskom, were deemed an essential service and permitted to operate fully under level 5.

May’s outcome was better than some economists expected, with a Bloomberg survey of six economists expecting annual production to fall 32.5%.The largest contributors to the annual change, however, were iron ore, which fell 66.3%; platinum group metals, which declined 27.3%; and manganese, which fell 45.4%.

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