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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: John Hunt who wrote (33760)	5/13/1999 4:08:00 AM
From: Alex	Respond to of 116770

5/12/99 - NUM seeks UK talks on gold sale policy <Picture> Johannesburg (Business Day, May 12, 1999) - The National Union of Mineworkers (NUM) has called on SA"s mining employers to approach the British government about formulating a structured five-year plan so that it can sell gold without adversely affecting the world gold market. This emerged at a gold crisis committee meeting yesterday where market reaction to the Bank of England"s plan to sell off 415 tons of its 715-ton gold reserves over five years was discussed. It comes on the eve of wage negotiations between the Chamber of Mines and the NUM and ahead of an initiative proposed by chamber CEO Zoli Diliza to hold a mining industry leadership summit meeting to develop a shared vision for the industry. The committee meeting was attended by two cabinet ministers and senior union and mining leaders. Diliza said the parties agreed that the market had overreacted to the UK announcement and there was no crisis in the industry, but there was a need to develop a way of managing negative perceptions created by speculators. Diliza said all parties were concerned that if the gold price continued to decline it would affect the fiscus and return on investment and could lead to job losses. Industry sources said the British gold sales were intended to bring the Bank of England"s gold reserves in line with those of its European counterparts. "It is not an attempt to move away from holding gold as a store of value," a source said. NUM general secretary Gwede Mantashe said the mining industry had to engage the British government and devise a gold sales programme that would prevent market speculation. By Renee Grawitzky Copyright 1999 Business Day. Distributed via Africa News Online.