Gold News

Gold producer records output decline

Newcrest, one of the world's largest gold producers, has recorded a drop in output amid fuel supply problems.

The company, which is Australia's largest gold mining firm, said that an explosion at its Telfer mine had cut gas supplies by 30 per cent, causing some $38.4 million worth of disruption.

It said output fell from 463,170 ounces in June 2007, to 435,120 ounces in the same month this year.

Meanwhile, fellow gold producer Santos said that it has cut its own production forecast by 6.9 per cent due to increased fuel, labour and material costs.

This could act to support gold prices as the dwindling supply becomes more valuable to investors.

The news comes amid a series of disruptions to the gold mining industry - it was reported this week that another day of industrial action at gold mines in South Africa had further affected production.

Mining company Gold Fields - the fourth-largest gold producer worldwide - said that its Kloof mine had been severely affected by the protests, which were caused by increases in electricity prices.

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