Chilean gold mine to close

A mine in Chile has announced that it is to close in order to perform necessary maintenance, according to Reuters.

Coeur d'Alene Mines made the statement yesterday (April 8th), saying that the Cerro Bayo mine would remain closed for six weeks in a bid to find ways to address rising costs and declining production.

This could be good news for investors in gold as it means that the global supply of gold will be reduced, leading to a possible rise in prices.

Gold output will be reduced by 4,000 ounces due to the mine's closure. Before the announcement, it was anticipated that the mine would produce 40,000 ounces of gold in 2008.

A spokesperson from Newmont Mining announced earlier this month that gold is becoming increasingly harder to find worldwide, with miners having to resort to deeper operations due to a lack of available gold at the surface.

Want to Buy Gold but unsure how to do it? For dealing spreads of $3 per ounce - plus secure, professional storage in Zurich, Switzerland for just 0.12% per year - click through to BullionVault now…