Parliament, Thursday, 15 June 2023 – The Portfolio Committee on Mineral Resources and Energy welcomes the improved performance in the mining industry based on the April 2023 mining production and sales data published by Statistics South Africa. This follows the concerning 3.4% decline in quarter four of 2022, and the marginal 1% increase in quarter 1 of 2023.
The committee notes that after 14 consecutive months of year-on-year decline, South African mining production turned positive in April 2023, increasing by 2,3%. Compared to the mining production drop of 5% year-on-year in February 2023 and 4.9% monthly, this is a welcome state of affairs.
Gold and coal were the main drivers of the year-on-year growth, with gold production rising by 27,4% and coal increasing by 12,5%. The industry also produced more copper at 16.8%, and nickel at 11.9%, with a year-on-year decrease for iron ore, manganese ore, chromium ore, platinum group metals (PMG) and diamonds.
It is noted that the coal output was down by 12.5% and diamond production plunged by 41%. On a month-on-month basis, the seasonal adjusted mining production increased by 1.8% in April 2023, compared to March 2023, indicating a 9% rise.
In terms of mineral sales at current prices, there was a 25.6% decrease for the year-on-year in April 2023, with the largest contributors, PMG, down 41.7%, coal down by 22.9% and gold also down by 45,7%. The significant positive contributor is chromium ore with 61,5%, on trend with the March 2023 data. In the three months ended April 2023, the seasonal adjusted value of mineral sales at current prices was 5.0% lower compared with the previous three months.
Notwithstanding the growth, the committee notes that the mining sector is significantly affected by electricity supply challenges, which hinder operational performance to the energy-intensive mining sector. Furthermore, the logistical constraints affecting the rail industry continue to influence outputs, and the level of investment in mining exploration is affected by the licensing backlogs.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON MINERAL RESOURCES AND ENERGY, MR SAHLULELE LUZIPO.
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