South African Gold Production Dives Again To 90 Year Lows

pmbug

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South Africa's gold output fell again in January and was down a very large 11.3% in volume terms in January. Annual gold production is set to be close to 220 tonnes which is a level of gold production not seen since 1922 (see chart below).



The falls were seen only in the gold market with production of other minerals holding up with total mineral production down only 2.5% compared with the same month last year.

South Africa as recently as two decades ago was the world's largest producer of gold by a huge margin. Only 40 years ago South Africa produced more than 1,000 tonnes of gold per annum but will only produce some 220 tonnes in 2012. Production peaked in 1970 and has been falling steadily and sharply since.
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http://www.zerohedge.com/news/south-african-gold-production-dives-again-90-year-lows

Krugerrands to become more scarce in the years ahead?
 

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A key part of my investment thesis is that the major miners are not able to bring additional supply online so they are going to have to buy the juniors. It would be nice if they would hurry up and start making more acquisitions.
 

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Follow up from GoldMoney:
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Likewise, recent data showed that during 2011, Australian gold production remained largely unchanged from 2010, with an increase of just two tonnes. Analysts had been expecting much improved production data. But while Australia has good prospects of boosting its gold production, South African mines are ageing – as can be seen by the great production declines in the Witwatersrand Basin. Here gold production reached its peak in 1970 at one million kilos, but has been steadily declining ever since. It’s expected that gold production in the Witwatersrand Basin will come to a complete standstill by 2050. Whereas in the past gold deposits were close to the surface and could be easily mined, today mining companies need to drill at ever-greater depths, thus greatly increasing production costs. Gold is often extracted at depths of up to 6,000 metres. Production of other metals in South Africa – including palladium and platinum – has however not declined as much as gold production.

But mining companies are increasingly hopeful that South American countries such as Peru, Chile and Paraguay can increase their production where other countries are faltering. The Peruvian Ministry for Energy and Mines reported that from January 2010 to February 2011 production increased from 429,298 to 485,987 troy ounces. Data for the silver sector were also good. In January Peruvian mining companies' silver production increased by 4.9%, but copper and zinc production dropped 4.8% and 15.75%, respectively.
http://www.goldmoney.com/gold-resea...n-gold-production-data-disappoints-again.html
 
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