Gold News

Gold miners 'forced to dig deeper'

Gold mining companies are being forced to run expensive operations in deep, potentially dangerous mines due to a lack of new finds, according to analysts at an international gold mining conference.

Reuters reports that, in addition, mining organizations are having to return to previously abandoned projects in the hope that more gold may be exploited from them.

This could be good news for investors in gold as the global supply continues to dwindle. This may push prices up in the future.

"We see a lot [of] companies going back to original projects. There are some new projects, but mostly it's old projects that are being repackaged," Randy Martin, vice chairman and chief executive of mining company Colombia Goldfields told Reuters.

Canadian MDN said that operating costs in its gold mine in Tanzania could rise to $72 million by 2009.

Earlier this month, Newmont Mining stated that the company depletes its reserves at a rate of ten ounces a minute and would need a replacement discovery rate of around 14 ounces a minute to replenish them.

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