SOUTH African mining input cost inflation slowed in July, but high fuel and other energy-linked costs still weighed on the sector.
The Minerals Council South Africa said its Mining Composite Input Cost Index rose 3.8% year on year, down from 4.8% in June. The drop came as crude oil and fuel prices eased during the review period.
Coke and refined petroleum products remained the biggest source of cost growth, with prices up 24.4% from a year earlier. Chemicals and man-made fibres rose 21.2%, hit by higher feedstock costs and strains on petroleum-based supply chains.
Labour costs rose 5.9% year on year after the annual wage round in July.
On a monthly basis, water costs climbed 7.8% after municipal tariff hikes, while electricity costs rose 5.5%. July was the first full month under winter electricity tariffs.
The council warned that costs could stay high in coming months, given firmer oil prices, tensions in the Middle East and higher administered prices.
Among mining sectors, input costs rose 4.3% year on year for gold and other mining and quarrying, and 4.2% for PGM miners.
