Thursday, August 7, 2008

SA’s gold output drops further

By: Matthew Hill
Published on 7th August 2008

The fall in South Africa’s gold production continued in June, when the industry produced 12,3% less of the yellow metal than the same month the previous year, government figures showed.

Actual total mining production in the country for the quarter ended June 30, slid by 6,3% compared with the figure for the June quarter in 2007, said Statistics South Africa (Stats SA).

South Africa’s mining industry has since January had to operate at an average of 10% less power than normal, which was curbing production.

The gold industry has also lost ounces because of a crackdown on safety in its mines, which include some of the world’s deepest and most deadly.

Compared with the first quarter of 2008, when the power crisis shut the country’s mines for five days, total mining production in the June quarter increased by 7,7%, after seasonal adjustment.

This was owing to an 8,5% increase in nongold mineral production and a 4,4% rise in output of the yellow metal.

While production figures continued their dismal run, mineral sales for the three months ended May 31 rose by 23,8% compared with the previous three months, on the back of buoyant global prices, and gold in particular.

The actual total value of mineral sales at current prices for the three months ended May 2008 increased by 40% compared with the three months ended May 2007, Stats SA said.

The main contributors here were platinum-group metals, coal, manganese and iron-ore.
Editor: Mariaan Olivier
SDource: miningweekly.com

No comments: