South African gold loses its luster as miners eye Ghana, palladium

South Africa has some of the world’s biggest reserves in gold, platinum and coal, and mining continues to be a core industry, contributing more than 29% of the country’s exports in May 2019. But South Africa’s traditional gold industry has lost some of its shine over the last few decades, with gold production in steady decline. During the past two decades, gold mining companies have experienced only two years of positive annual growth in gold production, with South Africa producing 83% less gold in 2018 than it did in 1980, according to Statistics South Africa. The sharp decline in gold output is remarkable, given that South Africa has the world’s second-largest reserves of the metal, according to estimates from the US Geological Survey. The state of the industry has raised political hackles. In July, Kevin Mileham, opposition spokesman for energy and natural resources, told parliament that mining was dying “not because the mineral resources are running out, but because of government ineptitude, poor policy choices and militant trade unions.” “[Mining] is dying because investors no longer wish to put capital into a country where the word of the government is no good,” Mileham argued. He was responding to a statement… continue reading

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Source: CTRM Center

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