South African gold production for the first quarter of 2009

First Quarter 2009 Gold Production

In the first quarter of 2009, South Africa’s gold production fell by 10% to 49 713.6 kilograms when compared to the 55 242 kilograms produced in the fourth quarter of 2008. On a year-on-year basis the rate of decline in gold production was 4.8% in the first quarter of 2009.

Chamber Member Gold Production

For gold mines members of the Chamber, production declined by 10.1% to 40 720.6 kilograms in the first quarter of 2009 when compared to the fourth quarter 2008. The 3.4% decline in tons milled plus 6.9% decline in average grade led to this fall in production. On a year-on-year basis Chamber member production fell by 7.3% in the first quarter of 2009, as the 1.3% decline in tons processed through the mills combined with a 6.1% decline in the average grade recovered resulted in lower production. There was an increase in the use of low grade surface materials being processed through the mills in the first quarter of 2009 as the mines attempted to try and compensate for lower underground production caused by the holiday period extending into the early part of 2009. While it is recognized that the first quarter presents a challenge from a holiday period point of view, the decline in production on a year-on-year basis in the first quarter of 2009 must be considered from the point of view that first quarter of 2008 was a disaster for the South African mining industry due to the electricity crisis. So the first quarter 2009 4.8% decline in production was measured against a lower base in 2008.

OFFICE OF THE CHIEF EXECUTIVE

For any enquiries related to this media statement please contact:

Jabu Maphalala
Deputy Communications Adviser
Chamber of Mines of South Africa