Charlotte Mathews
14 November 2008
Johannesburg — SA's gold production dropped 17,7% in September compared with September last year, underlining the country's retreat from once being the world's largest gold producer.
Since its 1970s peak, SA's gold production has declined, and last year it slipped into second place behind China.
Figures released by Stats SA yesterday showed the country's total mining production volume dropped 3,5% between September this year and last year, largely because of the fall in gold output, although other mineral production also fell.
The decline does not bode well for the country's gross domestic product growth in the September quarter, which will be reported towards the end of this month.
Nedbank economist Nicky Weimar said the September quarter would also show negative growth for manufacturing, the wholesale and retail industries and tourism. There might be some growth in agriculture, construction and service industries. But the performance of the finance sector in the quarter, another big component of the economy, was hard to predict.
A gold analyst, who asked not to be named, said the year-on-year drop in gold output in September was probably caused by a range of factors, including power rationing, safety-related stoppages and falling grades, which means the number of grams of gold per ton of rock.
The decline in grades in SA's ageing gold mines was a long-term issue, the analyst said.
Latest quarterly reports from SA's biggest gold producers bore out Stats SA's figures. All three produced less gold in the September quarter this year than a year ago.
AngloGold Ashanti produced 13% less gold at 538000oz in the September quarter. Gold Fields' South African gold production dropped 28% to 492000oz because of power rationing and safety-related production cutbacks and improvements.
Harmony's gold production fell 9,9% to 396803oz year on year after restructuring.
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