Gold News

Gold Prices could rise as White Mountain mining is halted

The supply of gold has been impacted by the action of Chinese farmers in response to alleged water contamination.

Operations at the White Mountain mine were halted after road access to the underground site in China's Jilin province was blocked by the farmers.

Action was taken in response to a supposed case of water contamination, for which the farmers have demanded compensation.

However, Sino Gold Mining Limited, which owns 95 percent of White Mountain, believes the claims are without foundation.

Nevertheless, the company is hopeful that a breakthrough in negotiations between the two sides can be reached shortly.

"Sino Gold is working with the relevant authorities to resolve the situation and is optimistic that full gold production will resume shortly," a company statement read.

The risk of a gold miners' strike in South Africa was averted recently, allaying fears that production at the world's biggest gold miner would be halted.

Supply restrictions would have put upward pressure on price, strengthening the position of Gold Investment as a default option in times of economic uncertainty.

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