It appears that the gold supply just got a little tighter. Probably not a good sign either that Eskom and the Chamber of Mines were not available for comment on the electricity issue in South Africa.

Regards - VHF

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South African gold production again down - 15.6% lower in Q1

South Africa’s gold production fell to 52 228k (52.2 tnnes)g in the first quarter of 2008 as gold miners battled with lower power supply.

Mineweb

Author: Tessa Kruger
Posted: Tuesday , 03 Jun 2008

JOHANNESBURG -

South Africa's gold production fell by 15.6% to 52,228kg (1.68 million ounces) in the first quarter of 2008 on fourth quarter 2007 as the sector experienced a power shutdown in January and battled with lower electricity supply during the rest of the quarter.

The Chamber of Mines said the rate of gold decline on a year-on-year basis was 16.8% in the first quarter, after the Chamber had warned that a 15-20% decline in production was probable due to the lower power supply.

Although power supply to certain mines were increased from 90% to 95% from 14 March as it became clear that some mines were having difficulty with operating at only 90% of their normal electricity use, the increase to 95% was only granted to some operations.

The Chamber reiterated that the gold mining industry accounted for R40 billion ($5.19bn) or 7.5% of South Africa's merchandise exports and employed 168,860 people in 2007.

It said it was "vital" that the events of January that saw key mines closing down for a couple of days was not repeated and that a more strategic approach to the electricity challenge was followed in future.

South African state power utility Eskom cancelled a briefing on its power plans for winter season in the country today.

The Chamber of Mines could not yet comment on production expected in the next quarter.