Mining production in South Africa plunged 47.3% year-on-year in April – recording the biggest decline in output since 1981.
The poor production data has been attributed to the COVID-19 pandemic and lockdown regulations which forced mines to suspend operations.
Production losses were across the board, according to data from Statistics South Africa.
Gold production plummeted 59.6%, while copper output plunged 93.7% and diamonds 60.8%.
Production for platinum tanked 62%, iron ore 68.7% and manganese ore fell 57.6%.
Geoff Nölting, FNB Economist, said he expects mining output to have remained under significant strain in May amid level 4 lockdown restrictions, which limited most mines to operate at reduced capacity during the month.
“This and the temporarily lower global demand for most commodities underpin our view of the sector contracting in the short to medium term,” Nölting said.
“Additionally, we have recently witnessed Covid-19 outbreaks in key mining regions, which could further hamper production levels as mines are forced to shut down operations in order to prevent the further spread of the coronavirus.”
