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S.Africa gold output tumbles
Allan Seccombe
Posted: Fri, 19 May 2006
[miningmx.com] -- SOUTH African first quarter gold output fell 10.9% year-on-year to 68 tonnes, and despite the local gold price soaring by a third in the period, there are five mines that are marginal, the Chamber of Mines said on Friday.
"South Africa’s gold production in the first quarter fell by 10.9% year-on-year to 68 tons on the back of the lower number of production shifts available to mines and in terms of the continued restructuring on certain operations," the Chamber said.
The fall was 9.5% quarter-on-quarter.
"Despite the rand gold price rising by 32% to an average of R109 219 per kilogram in the first quarter of 2006, five mines employing 53 708 employees and producing an annual 57.2 tonnes of gold were still marginal before capital expenditure," the Chamber said.
During the March quarter, an 11.1% fall in the tonnes mills overshadowed the average
grade, which rose 1.3% to 4.96 grams/tonne.
Gold mines that are members of the Chamber reported a 9.9% year-on-year decline in production for the quarter to 58.3 tonnes.
The Chamber revised its data upwards for South African gold output for 2005 because of revised by-product information to 297.3 tonnes from 296.3 tonnes.
"This means that the country’s 2005 gold production fell by 13.1% in 2005 versus 13.9% decline first reported," it said.
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