Vancouver — Last year was not a memorable one for the world’s No. 1 gold-producing country. Low gold prices saw South Africa post its lowest annual output in almost 50 years.
The country’s Chamber of Mines says 428.3 tonnes of the precious metal were produced in 2000, down from 449.5 tonnes in 1999 and well off the 492 tonnes cranked out in 1997.
The recorded level of production for South Africa was at its lowest in 1954, at 411.7 tonnes, and peaked in 1970, at nearly 1,000 tonnes.
The Chamber of Mines traces the shortfall to late 1997, when gold hit a then-record low of US$274 per oz. and financial losses mounted at unprofitable mines. The producers felt another round of pressure in 1999, when the gold price fell to its lowest level in two decades, following Britain’s first gold auction.
The only real bright spot for South African companies in 2000 was a weak local currency, which helped offset depressed gold prices.
South Africa’s 13 official public holidays, four of which fell in mid-week, were also a factor in the drop in production. “The disruptive impact of public holidays has a major bearing on the ability of the industry to mine more, impacting production, increasing costs and undermining the industry,” according to a Chamber of Mines report.
Most South African-based gold companies produce the bulk of their gold domestically.
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