Gold News

Gold investing could rise after mine's output plummets

Gold output in Tanzania could drop by around ten percent on the year, it has been reported today (August 6th).

In news which will interest anyone investing in gold, an industry official has confirmed that disruptions to operations at its largest underground mine, Geita, has led to lower recovery rates.

According to figures from the mine's owners, the South Africa-based AngloGold Ashanti Ltd (AU), its projected output for 2008 is 430,000 troy ounces.

This is well under the optimum capacity of 600,000 ounces and far below the 1.75 million ounces recorded in 2007.

A report last month from AngloGold confirmed that poor mill use at Geita was affecting its levels of production, while also looking at the possibility of technical issues.

The slowing in production should mean that anyone who has been buying gold recently should view the situation as a bonus if, as is possible, it pushes up gold prices.

Tanzania is currently Africa's third-largest producer of gold, coming in behind Ghana and South Africa in the table.

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