South African gold production falls - Thursday 5th June 2008
A news release from South Africa's Chamber of Mines has shown gold production to have fallen during the first quarter of 2008.
The figures indicate 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.
This could support gold prices for investors as the global supply is failing to keep up with demand, which remains high in countries like China and Russia.
The report largely blamed the unreliability of the electricity supply for the downturn in production - mines were closed for five days in January due to power cuts.
Eksom Holdings, which provides 95 per cent of South Africa's electricity, was forced to ask mines to ration the power they used, reports Reuters.
"A more strategic approach to managing the electricity challenge is required, including ensuring that tightness in the electricity market is handled better in future and that all electricity users become more energy efficient," said the Chamber of Mines report.
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The figures indicate 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.
This could support gold prices for investors as the global supply is failing to keep up with demand, which remains high in countries like China and Russia.
The report largely blamed the unreliability of the electricity supply for the downturn in production - mines were closed for five days in January due to power cuts.
Eksom Holdings, which provides 95 per cent of South Africa's electricity, was forced to ask mines to ration the power they used, reports Reuters.
"A more strategic approach to managing the electricity challenge is required, including ensuring that tightness in the electricity market is handled better in future and that all electricity users become more energy efficient," said the Chamber of Mines report.
Looking to Buy Gold today? For direct access to live Gold Market prices - and to save up to 80% compared with coin dealers' fees - click through to BullionVault now…
Goldbug, 05 Jun '08
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