Gold News

Mine closes, gold output to fall

One of South Africa's key mines has been forced to close a shaft after two workers were killed in a cave-in last week.

The Kloof number four shaft, owned by Gold Fields has closed for an unspecified period while an inspection is carried out on the safety of the mine following the incident, which was caused by an earthquake.

"All production at the shaft has been stopped and an investigation by the Department of Minerals and Energy is being carried out," Gold Fields said in a statement.

The news could act to support gold prices, as it shows part of a continuing trend of falling output. This is likely to increase demand for the precious metal.

Earlier this month, a news release from South Africa's Chamber of Mines showed gold production to have fallen during the first quarter of 2008.

The figures indicated that gold output fell 17 per cent, from 2.02 million ounces in 2007, to 1.68 million ounces in the first quarter of 2008.

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