Gold News

Global gold output 'to drop 15-20%' by 2012

The chief executive of a major African miner has claimed that global gold output could decrease considerably over the coming three or four years, according to Reuters.

Mark Bristow, head of Randgold, which owns two gold mines in Mali, has explained that he can see production slump by 15 to 20 per cent as credit conditions continue to tighten.

Furthermore, he noted that this scenario is providing an opportunity for the bigger firms to swallow up junior miners and their assets as they struggle to keep their heads above water.

He told the news provider: "We just think that there are huge opportunities to undress the junior section of the industry."

Mr. Bristow's comments will be of particular interest to anyone considering investing in gold, as such a considerable reduction in global output would presumably push gold prices higher.

Indeed, his views have been backed up by recent data which revealed that production in South Africa - the world's second-largest producer of gold - was down by 17.7 per cent during the September on a year-on-year basis.

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