Mining sector contracts for sixth consecutive month

Mining production contracted 1.5% year-on-year in April, extending the sector’s fall to a sixth consecutive month.

Although this outcome spells a weak start to mining production for the second quarter, an improvement is expected to be seen in May and June, said FNB economist Matlhodi Matsei.

Factors likely to support recovery include improved electricity supply compared to the first quarter, as well as some normalisation in gold mining production following the end of the protracted strike at Sibanye-Stillwater, Matsei said in a note.

For some analysis on the current operating environment and whether the sector is likely to recover, Business Day TV spoke to mining luminary and Junior Mining Indaba chair Bernard Swanepoel for his take.
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