Demand from China is one of the reasons for South Africa's total mining production rising for a third successive month in March, according to figures released on Thursday by Statistics South Africa.

Growth was boosted particularly by demand from China and other fast-growing Asian economies, the Business Day newspaper in Johannesburg also reported on Friday.

The latest figures indicate the highest growth in South Africa since 2004, as manufacturers globally continue restocking inventories.

Total South African mining production grew 11 percent in March year on year, following a 6.6 percent increase in February and a 9. 5 percent rise in January, despite a slump in gold production, according to the figures.

In addition, South African mining production increased by four percent in the first quarter compared with the fourth quarter of last year. Month on month, the volume of mining production increased by a seasonally adjusted 3.8 percent in March.

The total value of South African mineral sales increased 3.6 percent on an annual basis in February but was down 5.6 percent compared to the preceding month.

Business Day said that mining production accounts for about three percent of South Africa's overall output and 2.3 percent of jobs in the formal sector but it makes up more than half the value of the country's exports.

The main contributors to March's production growth were diamonds, which increased 98.4 percent; manganese ore, which climbed 55.3 percent; nickel (35.2 percent); the platinum group of metals (25.4 percent); and iron ore (25.3 percent).

The strong rebound in these minerals comes after sharp declines a year ago due to the global economic downturn.

These increases were, however, countered by declines in copper and gold and building materials. Gold output fell 12.7 percent compared with the same month last year, and copper production dropped 25.9 percent, but this was offset by a 25.4 percent jump in platinum group metals volumes and a three percent rise in coal, among other minerals.

Despite the rise in the dollar price of gold, South African gold production growth has not risen sharply due to the strength of the South African currency and rising input costs electricity, wages and transport costs.

In addition, Business Day reported, there have been safety- related stoppages in the gold industry due to accidents.

Although South Africa remained the world's top gold producer for a century, this year it slipped to the fourth place, behind China, Australia and the United States.

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