Gold News

Gold Fields output 'will be lower than expected'

One of the world's leading gold producers has announced that its output will fall in 2008, despite earlier forecasts.

Gold Fields, the world's fourth-largest gold producer, said that its output for this year will fall by about 15 per cent to 3.6 million ounces, rather than the 4.25 million predicted previously, reports Reuters.

The company has blamed the forecasted drop on power cuts and rising prices of steel, timber and labor for mining in South Africa.

"We're probably going to miss [the target] by about half a million ounces, but if you have prices going up and then the input price is following the same curve, nobody makes any more money," said Nick Holland, Gold Fields chief executive, according to the news provider.

Gold Fields was forced to temporarily halt operations in South Africa earlier this year after a series of power cuts.

This could be good news for those looking for a gold investment opportunity, as the demand for the precious metal is currently very high.

Earlier this month, it was reported that the Venezuelan president Hugo Chavez had announced that there will be no new gold projects or exploration for gold in the country in a bid to save the environment.

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