Giant dump trucks dump raw tar sands for processing at the Suncor tar sands mining operations near Fort McMurray in Alberta, Canada. Picture: REUTERS
Giant dump trucks dump raw tar sands for processing at the Suncor tar sands mining operations near Fort McMurray in Alberta, Canada. Picture: REUTERS

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OUTPUT in the mining sector fell sharply in January this year compared with a year ago, indicating economic growth got off to a slow start this year.

Mining production decreased significantly by 4.5% year on year in January after contracting by 1.2% year on year in December.

Declining mining production and rising input costs could encourage more job losses in the sector.

The decline was mainly due to lower iron ore, copper and manganese ore production. The slowdown in Chinese demand for these commodities, coupled with low global commodity prices, is negatively affecting the mining sector.

Gold production was higher and was a significant positive contributor in January, Statistics SA reported.

Seasonally adjusted mining production decreased by 4.9% in January 2016 compared with December 2015 (month on month). This followed a month-on-month decline of 0.5% in December 2015 and a 1.9% increase in November 2015.

Seasonally adjusted mining production was down 0.6% in the three months to end-January compared with the previous three months, Stats SA said.

Mineral sales were up 2.8% year on year in December, partly reflecting a weaker rand. The sale of other non-metallic minerals, gold and coal supported mineral sales, which were offset by significant declines in the sale of iron ore and manganese ore.