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Rate of SA gold decline to slow - Roger Baxter, senior economist, CoM
In an interview on SAfm @ 18:05 on Wednesday, 7 March 2007
[miningmx.com] -- THE rate of decline in South African gold production was expected to slow as miners broke lower grade ore, said Roger Baxter, senior economist at the Chamber of Mines of SA.
The improvement in the rand gold price, now at record levels, was supporting lower grade mining and was providing South African gold miners with more mining flexibility, Baxter said.
South Africa produced 275 tonnes in 2006, which was 7.5% lower year-on-year. This was lowest gold production since 1922.
Baxter said the decline of gold production was 13% in 2005 and 7% in 2006. He was speaking on SAFM which broadcasts a week nightly radio programme.
However, capital expenditure by South African gold miners recovered in 2006 at just under R6bn. These capital expenditure programmes included a number of brownfields expansions. "This bodes well for production going forward," said
Baxter.
Commenting on global gold mining trends, Liston Meintjes, a fund manager for Metropolitan Asset Managers, said the higher gold price would support a number of new gold discoveries.
"At $660/oz, there will be quite a few developments that will get the go ahead in the coming years," said Meintjes.
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