Red-Hot Resources

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Wednesday, March 07, 2007

South African Gold Production Plummets

South Africa is the biggest gold producer in the world. But how much longer will it hold that title when its production is falling off a cliff?

"South Africa’s annual gold production has sunk to its lowest level since 1922, extending the decline from the world’s biggest source of the yellow metal that has also helped drive an almost continuous rise in prices this decade ... Gold output from South Africa fell 7.5 per cent in 2006 to 275.1 tonnes. This means the country’s annual output has now halved over the past 10 years."

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Costs are rising, so how is South Africa supposed to turn this around? Meanwhile, in Australia, gold production fell to 250 tonnes in 2006 from 266 in 2005 -- but in 2007, The Australian Bureau of Agricultural and Resource Economics (ABARE) expects Australian gold production to hit 280 tonnes. That means Australia could outproduce South Africa THIS YEAR.

Is that good news for Red-Hot Asian Tigers subscribers? I think so.


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