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Daily Metal Prices & Market News
Friday 10th of February 2012
Monday, February 25, 2008

Jobs and production lost as South African power crisis continues

Jobs and production lost as South African power crisis continues

Gold Fields, the world’s fourth-largest gold miner, has reacted to the power supply difficulties that continue to beset South Africa with the news that it will be reducing production.

Last month operations in a number of South Africa’s key mining industries were halted for five days because of power rationing introduced by utility company, Eskom. Ever since, the country’s miners have operated with 90% of the electricity they need.

The head of Gold Fields’ South Africa operations, Terence Goodlace, has stated: “The inability of Eskom to supply the mines their full power requirements, and to commit to additional electricity demand for new mining projects…in development, has caused a significant crisis in the South African mining industry.”

Adding: “It is paradoxical that we have to consider downscaling in the current record-high gold price environment.”

The company expects sustainable production at its South African operations to fall by between 15% and 20% from the fourth quarter of 2007 onwards. Gold Fields’ workforce total 53,000 and around 6,900 job losses are expected.

Meanwhile, AngloGold Ashanti, the world’s third-largest gold miner, expects this year’s gold production to be cut by 400,000 because of the power crisis.

 


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