In what it shouldn’t come as a surprise for anybody who has been following the news in the last three month, South Africa reported Thursday its mining output dropped 8.3% on the year in September.
The annual fall, the biggest in five months, was sharper than the 4.5% economists had forecasted as strikes crippled the industry which accounts for 6% of the country’s gross domestic product.
Today’s data from Statistics South Africa shows what high a price the country’s economy has paid since August when police shot and killed 34 protesters outside Lonmin's (LON:JSE) Marikana platinum mine, northwest of Johannesburg.
Copper, chromium ore, and platinum group metals, registered the highest negative growth rate, Statistics SA reported.
But the main contributor to the 8.3% plunge was platinum group metals (PGMs), which contributed -5.2%, since most mining strikes in August took place at platinum operations.