Statistics South Africa (Stats SA) today announced that mining production has shown its first increase since July 2008. The index of total mining production was 7.7% higher in January 2010 compared with January 2009. 

The Pretoria based agency says a 7.7% increase followed decreases of 2.3% in December 2009 and 2.2% in November 2009. Total mining production for the three months ended January 2010, after seasonal adjustment, increased 3.3% compared with the previous three months. 

Production of platinum group metals was the main contributor (contributing 3.6 percentage points), while iron ore contributed one percentage point to the 3.3% increase. Actual estimated total mining production for the three months ended January 2010 increased 0.6% compared with the three months ended January 2009. 

Turning to mineral sales, Stats SA said the total value of mineral sales was 22.7% lower in 2009 compared with 2008, following increases of 34% in 2008 and 15.9% in 2007. However, the value of iron ore and gold sales increased in 2009 and contributed 1.6 percentage points and 0.9 of a percentage point respectively to the annual 22.7% decrease. 

The total seasonally adjusted value of mineral sales at current prices for the fourth quarter 2009 reflected an increase of 2.4% compared with the previous quarter. The increase of 2.4% (R1392.4 million) was mainly due to increases in the sales value of platinum group metals (contributing 2.1 percentage points), manganese ore (contributing two percentage points) and gold (contributing 1.4 percentage points). - Sapa