Gold News

Gold mines 'facing walkouts'

Gold production is coming increasingly under threat in Latin America as workers strike over fairer pay.

Peru's president Alan Garcia is facing growing calls to distribute a fairer share of the mining profits to workers who are not currently benefiting from the high gold prices.

Miners at Yanacocha, owned by Newmont, are still deciding whether to join the walkout already underway by those in the copper industry, Reuters reports.

The Pierina mine, owned by Barrick Gold, has already been hit by strikes and has had to call in temporary workers.

Any widespread industrial action could act to support gold prices, since it reduces the worldwide supply and makes the precious metal rarer.

Yanacocha is the largest gold mine in South America, but it has been faced with falling output in recent years.

In 2007, it produced some 1.56 million ounces, down from the 2.57 million ounces recorded in 2006.

Earlier this week, it was reported that gold mining companies in Ghana have entered into negotiations with the government to oppose a cut in electricity subsidies

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