South African miners-it was the best of times, it was the worst of times

摘要

Recently released data from the South African Chamber of Mines shows that on a quarter-on-quarter basis gold production increased by 3.8 percent in 2Q2004 when compared with the same quarter last year. These improvements were due to growth in tonnes milled and a rise in the average grade mined. However, output for 1H2004 is running at 6.9 percent lower than the same period last year, which the Chamber says reflects the impact of the 3.6 percent decline in the rand gold price and cost pressures experienced over the last year. But it adds encouragingly that cash production costs for Chamber members declined by 2 percent to R71,492/kg as the industry grappled with cost control in the face of lower revenues. This is not the first time in recent years that the South African gold mining industry, and the mining industry as a whole, has faced such challenges. The 1995 and 1997 cost pressures resulted in a restructuring and consolidation in the local industry that altered its face to the world. Cost pressures that descended on the industry at the end of the last Millennium were alleviated by the fall in the rand against the US dollar that resulted in the local gold price reaching new record highs in 2002.