Gold news from South Africa

The South African Chamber of Mines has published figures showing that gold production in the country rose by 1.1% in the second quarter of 2007, as compared with the first-quarter of the year.

However, when compared with the second quarter of 2006, gold production actually fell during the quarter, by 7.5%.

In 2007, second quarter production totalled 63.52 tonnes, but capital expenditure increased by 54%, to US$305 million, as compared with costs for the second quarter of 2006.

According to the Chamber, the substantial rise in capital expenditure has produced a 2.4% year-on-year increase in development metres underground, which should result in an improvement in metres mined underground in the future.

Further news from South Africa includes an optimistic statement from African Rainbow Minerals (ARM), which owns 16% of Harmony Gold.

ARM is Harmony’s biggest single shareholder and has declared that it continues to see huge potential and opportunities in troubled company.

Harmony has recently been in the headlines for a R200 million accounting overstatement, the resignation of its chief executive officer and financial director, and rumours of corruption.