Potential for higher mining exports remains strong – SA
miningweekly.com
By: Christy van der Merwe
Published on 21st October 2008
PRETORIA (miningweekly.com) - South Africa’s export earnings improved by 33,7% between January and August, despite mining export volumes “stagnating” in the first half of the year, the National Treasury said on Tuesday.
The Treasury said that export earnings, which were mainly derived from commodities, were boosted by strong commodity prices in the first eight months of the year.
Total production from the mining sector was 8,8% lower in the first eight months, compared with the same period in 2007.
“The mining sector has faced a number of difficulties in expanding production in 2008, including a period of significantly lower output due to electricity shortages and concerns over mine safety,” the National Treasury said.
“Although commodity prices have fallen sharply in recent months, prices remain relatively high and are likely to receive continued support from economic growth in Asia,” said the National Treasury.
“The potential for higher mining exports in the medium term remains strong,” it added.
South Africa’s mining sector has expanded investment rapidly over the last three years. |
