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Gold Fields March qtr gold outlook still sombre Posted: Mon, 17 Mar 2008 [miningmx.com] -- GOLD Fields will still produce 20% less gold in the March quarter compared to the December quarter despite power restored to 95% of average consumption at its Driefontein and Kloof mines, Terence Goodlace, head of South African operations, said on Monday. By the end of the week ending 14 March, electricity utility Eskom increased the power supply to Gold Fields, one of the hardest hit by the power crisis, to 566 megawatts. This increased power does not extend to Beatrix or South Deep. “The granting of additional power to our mines will go a long way to help saving jobs at Driefontein and Kloof gold mines,” Goodlace said. However, the world’s fourth-largest gold producer stuck by its forecast that output would be more than 20% lower in the March quarter against the already reduced December total of 657,000 oz. Gold Fields said in February, the decline would be between 20% and 25%. This comes at the gold price scaled fresh highs of above $1,030/oz. At current prices, the lost production costs between $133m and R166m in revenue. Gold Fields warned in February 6,900 jobs were at risk across the group because it would mothball shafts including the 6 and 7 shafts at Driefontein at the cost of 2,600 jobs. At Kloof 3 and 8 shafts would be mothballed, losing 2,300 jobs. The news was met by outrage by the unions, which threatened industrial action if any jobs were lost because of mines restructuring to operate within the 90% power limit mining companies and heavy industry were obliged to operate under during February. Eskom declared force majeure on its power supply on January 25, stopping the mines for a week. Statistics South Africa has said January’s gold production was nearly 17% lower year-on-year because of that power cut. Click Here to subscribe to our daily newsletter
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