Contrary to our expectation of a small contraction in August mining output, production surged 6.9% y/y and 5.3% m/m (seasonally adjusted), with all components of the index, apart from copper and building materials, registering gains. The biggest contributors to the jump in production were iron-ore, diamonds and gold, adding 1.3 pps, 1.2 pps and 1.1 pps respectively. While the global environment remains supportive of both commodity prices and output, the August print far exceeded our expectations, and puts the sector on course to make a significant positive contribution to 3Q17 GDP. The domestic environment, however, remains less certain with regard to policy and the relationship between the industry and the mining ministry. For this reason, we will await further data before considering upwardly revising our full year forecast for the sector.