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Gold mining 'significantly affected', says AngloGold

Mining firm AngloGold Ashanti has announced that its gold production dropped five per cent in the fourth quarter of 2007.

Citing the ongoing problems regarding power supply at mines in South Africa and issues at one of its Tanzania mines, the company said it produced 1.37 million ounces of gold in the three months to December.

It went on to warn that output is likely to be lower over the course of 2008 - a forecast that has been echoed by numerous gold mining firms in recent weeks, indicating that gold supply is indeed under a significant amount of pressure. This reduction in supply has helped to propel gold prices to the highest levels seen in some time.

"The uncertainty around Eskom power supply is having a significant impact on our operations in South Africa," commented Mark Cutifani, chief executive of AngloGold Ashanti.

"This uncertainty means that our South African business faces very particular challenges right now."

It is not just South Africa that has seen its gold production dip. Earlier this month, Living In Peru cited an Expreso article where Ysaac Cruz of the National Mining, Petroleum and Energy Association admitted that mining output of the metal in Peru has plunged by 19 per cent in the last 12 months.

In addition, figures released by the US Geological Survey have suggested that gold mining production dropped by six per cent in 2007 - potentially representing good news for those investing in gold.

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