South African gold loses its lustre
World output to hit record highs, ageing local mines in steep decline
Global gold production is expected to hit a record high this year, but SA, once the dominant player in world gold output, will play no part in the forecast. Precious metals analysts GFMS warn of a "strong decline" from the country, continuing its downward trajectory. SA was for decades the largest source of mined gold in the world, but after 140 years of mining, the operations have become older, deeper and more dangerous. Falling grades, rising costs and declining labour productivity, coupled with an uncertain regulatory environment, have resulted in a precipitous drop in little more than a decade. The local industry now employs fewer than 117,000 people from 180,000 in 2004. It is now in eighth place in global gold production rankings, barely higher than Mexico. It is also the most expensive place by far to mine gold, according to the latest report from GFMS. GFMS forecast production would hit a high of 3,265 tonnes in 2018, with Asian countries such as Indonesia, Mongolia and Chin...
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