Gold News

Gold mining decreases in Indonesia

Demand for gold could pressure supply further following an announcement that gold output in Indonesia decreased last year.

Newmont Mining said that production would amount to much less this year than it did last year.

Spokesman Rubi Purnomo told the newspaper that differing conditions in mining are proving difficult.

"We are mining in a different part of the pit that has lower grade ore than the ore we were mining in 2007. It is part of the normal cycle in mining operations for the type of ore we have in Batu Hijau," he said.

The news could be good for gold prices as demand for the precious metal is still high, particularly in the jewelry sector, while overall output is continuing to decline.

Gold is among Indonesia's main exports, along with gas, plywood, rubber and palm oil, according to the BBC.

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