Mining production increased more than expected in March. Output in the sector increased 4.5% in March compared with 3.8% rise in February 2021.
The consensus among most economists was for the sector to increase by 3.9% rise in February.
#Mining production increased by 4,5% in March 2021 compared with February 2021. Production was up 21,3% y/y, led by increases in platinum group metals and iron ore.
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Mining companies have been taking advantage of the higher commodity prices by ramping up production. Output in some of the commodities has seen a double-digit increase.
Platinum Group Metal added production by a staggering 68.6% followed by iron ore increasing by 47.9% and manganese ore up by 29.9%, while gold increased its output by 10.5%.
CEO of Beech Veltman Incorporated, Warren Beech, says the growth shows a positive sign.
“The mining production output grew in March showing an extremely positive sign. This is a reflection of increased demand.”
Dissecting February mining production figures with economist Henk Langenhoven:
Positive contribution to GDP
Economists say firmer mining production data suggests that the sector contributed positively to real GDP growth in the first quarter of the year.
However, there are concerns over the resurgence of COVID-19 affecting mining production in the country.
Mining production beat market expectations of a 3.9% rise in March.
The sector recorded its first increase in February of 2021 to an end 11 months of consecutive year-on-year declines.
