Gold News

SA 'unlikely to become top gold producer again'

South Africa is unlikely to take the top spot again when it comes to global gold production, according to analysts.

In news that may be of interest to those with gold investments, Daniel Sacks of Investec Asset Management admitted that gold production in the country is on the decline as the yellow metal becomes more difficult to reach, forcing miners to go deeper underground, Reuters reports.

With GFMS recently stating that gold production fell by one per cent last year, it seems that gold bullion is becoming harder to supply amid an uncertain economic climate - potentially resulting in gold prices spiralling up even further.

Frans Barker of the Chamber of Mines (COM) said: "It will be very difficult for [South Africa] to reclaim that title [of biggest gold producer], or in other words increase our output significantly, owing to many issues, not least the current power problems."

These power cuts have been taking place as a result of a scheme in which firms can volunteer to shed electricity in their non-essential business operations - an issue that poses "a very real threat to the health and safety of personnel in underground mining operations", according to Dick Kruger of COM, and can result in mining stoppages.

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