Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (38395)	6/10/2009 8:25:26 PM
From: LoneClone	Read Replies (1) \| Respond to of 194001

South Africa gold mining will rebound from 2011 2009-06-10 23:30:00 commodityonline.com CAPE TOWN, S.AFRICA: The downslide in South African gold mining industry will continue upto 2010 but will rebound from 2011 onwards as the electricity supply and skills availability improves. New analysis from Frost & Sullivan, South African Gold Mining Industry, finds that the market had an estimated output of 220 metric tones of gold in 2008. Output levels are projected to decline, before recovering in 2014. "Despite facing a host of challenges, South Africa's gold mining sector has maintained its position in the global gold mining industry," notes Frost and Sullivan Research Analyst Wonder Nyanjowa. "South Africa is the world's third largest gold producer after China and the United States of America." The rising price of gold in international markets, state-of-the-art processing and refining plants and the transformation of the South African gold mining industry will continue to be key drivers of growth. The remaining deep-level gold deposits in the Witwatersrand gold basin of South Africa will continue to attract the attention of explorers and investors, given strong metal prices and the technological breakthroughs that are minimising operating costs. However, the deep-level mining necessary in the country exacerbates safety risks and uses more electricity and diesel for the transportation of personnel and ore bodies to the surface. The net effect is that deep-level mines are more costly and uncompetitive to operate. Start trading in commodities from as low as $50. Join now "The South African government's renewed focus on mine safety, declining ore grades, electricity shortages, skills shortages, increased operating cost pressures and a difficult labour environment will result in further production cuts," cautions Nyanjowa. "Mining companies are likely to be concerned with sustaining current operations rather than opening up new mines." South African gold mining companies should focus on improving operating efficiencies, cutting hedge books and containing costs at every level of their operations. Use of the latest technological breakthroughs in South Africa's deep level mines will help contain cost, Frost & Sulllivan report said.