Latest economic insights from the Minerals Council of South Africa note that following struggles in earlier months, mining production ended the third quarter on the front foot. Seasonally adjusted real mining production increased by 3.8% month-on-month (m-o-m) in September. This follows an increase of 3.3% (m-o-m) recorded in August. The biggest production increases were recorded in iron ore (+14.5% m-o-m), diamonds (+31.8%) and non-metallic minerals (+16.9%). The latter category includes limestone, sand, cement etc. However, the report states that the coal sector faces diverging trends. Improved Eskom plant performance should boost the demand for coal. However, rail and port problems continue to hamper exports, especially at current prices that make trucking coal less viable.
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