Volatile mining supply could boost gold price

Financial website Finfacts.com highlighted the potential for a rise in gold prices should volatile global mining conditions hit critical times.

"In a tight supply-demand environment any sort of industrial unrest and 'resource nationalism' in Latin America, Russia or elsewhere internationally will be supportive of the gold price," said the site.

A strike is planned at Newmont's Peruvian Yanacocha mine in November fifth, with the massive holding hoping to resolve industrial conflict rapidly and ward off the production losses suffered at the Lihir mine after recent strike action.

Strikes that rumbled on through September at the Papua New Guinea mine are reported to have cost the Lihir company around 2,350 ounces of gold per day in production losses.

These figures will be of concern to Newmont, with 38 Peruvian unions affiliated to the country's largest mining and metalworker federation scheduled and in preparation for November 5th.

In other mining news, Anglo American raised its offering of shares in AngloGold Ashanti from 61 million ordinary shares to 67.1 million, with proceeds to Anglo American estimated to total approximately $2.9 billion.