JOHANNESBURG (miningweekly.com) − South Africa’s mining production declined by 0.7% year-on-year in June, with diamond output falling by 34%, official data showed on Thursday.

The country’s gold production declined by 5.7% year-on-year and iron-ore output was also 5.6% weaker, Statistics South Africa (Stats SA) reported.

Manganese ore production jumped 41%, copper output rose by 16% and platinum-group metals (PGMs) production increased by 5% in the month.

The year-on-year decrease of 0.7% in June compares with 10.7% growth in May and a 12% year-on-year expansion in April.

Nedbank said that recent strikes in the gold and coal industries indicated that mining output probably fell in July and that it was likely that their impact could have spilled over into August.

"Some moderation in mining output could be experienced in the second half of the year due to a high base established in 2010 and the loss in momentum internationally," it said.

Nedbank also added that the outlook for mining continued to worsen. "Global commodity prices are expected to come under pressure as global growth slows. The risk of a sharp correction remains, particularly if the EU debt crisis intensifies and/or the US economy dips into another recession."

Second-quarter output declined by 1.1%, compared with the first three months of the year, mainly as a result of lower PGMs output.