MINING IN AFRICA SPECIAL — Gold production in South Africa

Gold output in South Africa in 1994 fell to an estimated 587 tonnes, its lowest level since 1958, Gold Fields Mineral Services of London reports.

The decline was spread throughout the year, although the prolonged pre-election period during the second quarter was initially blamed. South African mines account for about 31% of Western world gold production and 25.5% of total world production.

Gold Fields attributes some of the decline in production to a decline in recovered grade, “perhaps related to a reduction in pay limits resulting from higher local gold prices outpacing the increases in working costs. For the most part, however, the decline was a direct result of persistent labor unrest.”

Gold Fields says Anglo American, manager of the Vaal Reefs complex, revealed a reserve of about 1,620 tonnes of recoverable gold based on the current gold price. That figure is larger than the announced reserves for the Grasberg/Ertsberg mine in Indonesia.