ghana is not what i would consider stable..

Gold Fields CEO reckons gold price will rise to $1,200 by June 2009

Gold Fields CEO Nick Holland expects the gold price to rise to $1,200 by June 2009, but says production costs are also rising fast.

Posted: Monday , 30 Jun 2008

KLOOF MINE, SA (Reuters) -

Gold Fields Ltd's CEO Nick Holland said on Monday he saw the price of gold rising to $1,200 by June next year, but said production costs globally were rising fast.

"Chances are for an upside on the price, the single biggest factor is the global inflation and the commodities boom," Holland told Reuters.

"I would see the price at $1,000 in December and at $1,200 by June next year."

Holland said the global mining sector was facing steep inflation and production costs were rising sharply.

Speaking of the recent "invasion" by small scale miners at its Damang site in Ghana, Holland said current output was unaffected, and the company was in talks with government to try to resolve the issue.

He said the miners had been pushed out safely in the past and expected a similar outcome. (Reporting by James Macharia)