Gold News

Gold production warning from major miner

Gold Fields has warned that it is likely to see a significant slump in gold mining production as a result of continuing problems with power supply.

The company said it expects to see a drop in gold output of between 20 and 25 per cent for the current financial quarter compared with the three months ending in December 2007.

In news that may be of interest to those with long-term gold investments, Gold Fields also indicated that the ten per cent cut in power supply currently being imposed by Eskom could result in a drop in production of between 15 and 20 per cent later this year.

The recent record highs reached by gold prices may be partly attributable to the electricity supply problems that have hit many mining companies with operations in South Africa.

Earlier this month, Mineweb reported that Richard O'Brien of Newmont Mining told analysts all miners are finding it more difficult to find significant deposits of gold in their operations - another factor that is negatively affecting supply of the yellow metal but could have positive implications for those looking to buy gold.

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