Decline in SA gold production accelerated in 2007

South Africa’s gold production fell 7.4% last year compared to an average annual decline of 6.3% over the past decade, as average mined grades declined in 2007.

JOHANNESBURG -

The decline in South African gold production accelerated in 2007 with gold production falling 7.4% to 254,685kg (8,983,749 ounces) compared to an annual average rate of decline of 6.3% over the past ten years.

South Africa's decline in production seemingly accelerated as average grades mined fell, while gold mines processed more ore through mills.

Chamber of Mines members, accounting for 219,223kg (7,732,863 ozs) of gold produced last year, saw a 6.7% decrease in overall production as average grade mined fell 11.8% to 4.12 grams (0.15 ounces) per tonne, said the Chamber of Mines in a statement. This came despite the fact that members increased capital expenditure by 37% to R8.1bn (US$1 billion), increasing tonnes milled by 5.8%.

During fourth quarter 2007, South African gold production fell by 7% to 61,845 kilograms (2,181,518 ozs) on third quarter 2007. On a year-on-year basis, the decline in production also accelerated from 5.4% in the third quarter to 9.2% in fourth quarter 2007. This came on the back of safety issues that hampered mine production.

Gold mines belonging to the Chamber of Mines produced 7.4% less gold at 53,079kg (1,872,306 ozs) in the fourth quarter compared to the third, as they milled 1.5% less tonnes and experienced a 6% decline in average grade.

On a year-on-year basis Chamber members milled 6.3% tonnes more in fourth quarter 2007, but the increase was not sufficient to compensate for the 10% decline in average grade recovered and production fell by 9% as a result.