South African mining output slumps in June

South African mining production decreased by 6.2 percent year-on-year in June, according to data released by Statistics SA on Thursday.

The 6.2 percent drop follows a series of unprotected strikes and violence that has rocked the sector, which has lost R10 billion in production in the past year.

Output has also been hit by weak commodity prices and subdued demand from Asia.

The largest negative growth rates were recorded for 'other' metallic minerals (-38.0 percent), diamonds (-22.9 percent), PGMs (-18.9 percent) and gold (-14.1 percent). The main contributors to the 6.2 percent decrease were PGMs (contributing -4.6 percentage points) and gold (contributing -2.3 percentage points). Iron ore (contributing 2.0 percentage points) was a significant positive contributor.

Seasonally adjusted mining production increased by 0.1 percent in the second quarter of 2013 compared with the previous quarter, Statistics SA said.

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