SA gold output down 15,4%

JOHANNESBURG – Gold output in South Africa, the world’s largest producer of the precious metal, fell 15,4 per cent year-on-year to 72,4 tonnes in the third quarter due to restructuring and shaft closures, industry group the Chamber of Mines said yesterday.

The decline extends a long-term trend that has seen South African gold output tumble by over a third in the past decade as high-grade mines run out of ore and firms have to dig deeper to find new deposits. While production has slid all year, the rate of decline has slowed down, the chamber said.Compared to the previous quarter the decline was only 1,3 per cent, versus a 3,9 per cent decline in the June quarter as companies have largely wrapped up their cutbacks at unprofitable operations.A buoyant rand from late 2001 through 2004 hammered South Africa’s gold sector by slashing the export earnings from dollar-denominated gold when translated into the local currency, forcing firms to close or reduce output at some shafts.But the rand has weakened this year at the same time the gold price has surged to its highest levels in 18 years.”Given the improved economic outlook for the sector, it is likely that the rate of decline in gold production will slow to a more moderate pace over the next year,” a statement said.The chamber said it had upwardly revised production data for the first and second quarters after it received better data from non-chamber members.First quarter production was revised higher by 2,6 tonnes to 76,4 tonnes and second quarter output was increased by 1,4 tonnes to 73,4 tonnes.During the first nine months of the year, South African gold production has fallen 13,9 per cent year-on-year to 222,2 tonnes.Some of the world’s biggest gold producers are based in South Africa, including second ranking AngloGold Ashanti, No.4 Gold Fields Ltd and sixth biggest Harmony.- Nampa-ReutersWhile production has slid all year, the rate of decline has slowed down, the chamber said.Compared to the previous quarter the decline was only 1,3 per cent, versus a 3,9 per cent decline in the June quarter as companies have largely wrapped up their cutbacks at unprofitable operations.A buoyant rand from late 2001 through 2004 hammered South Africa’s gold sector by slashing the export earnings from dollar-denominated gold when translated into the local currency, forcing firms to close or reduce output at some shafts.But the rand has weakened this year at the same time the gold price has surged to its highest levels in 18 years.”Given the improved economic outlook for the sector, it is likely that the rate of decline in gold production will slow to a more moderate pace over the next year,” a statement said.The chamber said it had upwardly revised production data for the first and second quarters after it received better data from non-chamber members.First quarter production was revised higher by 2,6 tonnes to 76,4 tonnes and second quarter output was increased by 1,4 tonnes to 73,4 tonnes.During the first nine months of the year, South African gold production has fallen 13,9 per cent year-on-year to 222,2 tonnes.Some of the world’s biggest gold producers are based in South Africa, including second ranking AngloGold Ashanti, No.4 Gold Fields Ltd and sixth biggest Harmony.- Nampa-Reuters