JOHANNESBURG -(Dow Jones)- The global gold industry is in decline, with production likely to fall at about 3% a year for the next five years, the chief executive of AngloGold Ashanti Ltd. (AU) said Thursday.

"We will see another five years of decline in this industry," Mark Cutafini told analysts at a presentation in Johannesburg.

He said that the industry as a whole isn't uncovering substantial new ounces as mines are forced to go deeper for the metal and grades drop.

"It's why I'm optimistic about the gold price," he said.

Cutafini said gold is expected to rise to $1,000 an ounce in the long term, despite the recent financial turmoil worldwide that has seen it fall in recent weeks.

Company Web site: www.anglogoldashanti.com

-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@dowjones.com

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(END) Dow Jones Newswires

October 30, 2008 06:22 ET (10:22 GMT)