South African gold production for the third quarter of 2008

Third  Quarter 2008 Gold Production

In the third quarter of 2008, South Africa’s total gold production decreased by 2.1% to 55 725 kilograms when compared to the second quarter of 2008. On a year-on-year basis gold production was down by 16.2% in the third quarter.

Key reasons for the quarter-on-quarter and year-on-year declines in gold production include the impact of the electricity supply curtailment during 2008, which forced downsizing in the gold mining industry and the significant impact of safety related closures.

Chamber Member Production

For gold mines members of the Chamber, production decreased by 2.9% to 45 943.4 kilograms in the third quarter of 2008 when compared to the second quarter. The 0.9% recovery in tons milled to 13.3 million tons was not sufficient to offset the 3.7% decline in the average grade. On a year-on-year basis Chamber member production fell by 19.9% in the third quarter of 2008, as the large increase in the usage of surface low grade dumps increased the dilution rate through the mills with the result that the average grade recovered was 15.6% lower in that quarter.

For any enquiries related to this media statement please contact:

Jabu Maphalala
Deputy Communications Adviser
Chamber of Mines of South Africa