Gold News

South African gold output down by 16.2% year-on-year in Q3

The Chamber of Mines confirmed on Friday (November 28th) that total gold output in South Africa declined by 16.2 percent on a year-on-year basis during the third quarter of 2008.

Production for the quarter was 55,725kg, a figure which represents a fall of 2.1 percent from the previous three-month period, the body revealed in a statement.

The decrease is being largely attributed to the crisis experienced by the country's main electricity supplier Eskom in January, when mines were shut down for five days as the power grid suffered a near-collapse.

It has since struggled to return to full power output, with most companies receiving around 90 percent of their normal requirements and others getting 95 percent, on a case-by-case basis.

The body's figures also show that production by gold miners specifically fell by 2.9 percent to 45,943.4kg over the course of the quarter.

Declines in production are of great interest to anyone considering investing in gold as lower supplies will inevitably push the price of the precious metal higher.

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