Bloomberg reported that South Africa output from its mines increased for the first time in 6 months as demand for commodities picked up along with a global economic recovery.

Statistics South Africa said that production rose 7.7% in January from a year earlier, the first gain since July. Iron ore expanded 24% and platinum group metals including palladium and rhodium climbed 17%.

Barclays Capital said that commodity prices posted their biggest annual gain in 4 decades last year, based on the S&P GSCI Index, as consumption in China made up for weakness in developed nations. Demand will continue to surprise as investors pump a record USD 60 billion into raw materials this year.

The statistics office said that gold output from South Africa fell 18% in January from a year earlier. Diamond output jumped 59% after slumping the previous month, as demand recovered and De Beers reopened mines. Coal production rose 1.5% from a year earlier.

(Sourced from Bloomberg)