Gold News

Gold mining industry hit by Pretoria strikes

The gold mining industry in South Africa was left reeling last night (August 5th) as thousands of workers filled the streets of Pretoria in protest at high energy and fuel prices.

They made their way towards President Thabo Mbeki's office, chanting and demanding that action be taken over the rising cost of living in the country.

As a natural consequence, worker turnout at gold mines plummeted, with Gold Fields, South Africa's largest gold producer, reporting that its staff attendance varied between seven and 40 per cent.

Patrick Craven, spokesman for the Congress of South African Trade Unions (COSATU), said: "There is no public transport [country-wide]. The mining industry is closing down."

Several leading mining companies across the country were hit hard by the strikes, which are threatening to bring the continent's biggest economy to a standstill.

Although the effects of the stand-off remain to be seen, it is possible that with such widespread reduction in output, anyone looking to buy gold will find that prices could increase, making gold investment a more attractive proposition.


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