Friday, 13th October 2006 (3750 views)

Harmony Gold is confident that the gold price will remain high due to higher priced, greater risk production and continued demand.

The company, which is the fifth largest producer of gold in the world, has announced that the risk of production will increase as miners begin to venture into previously unchartered areas, resulting in buoyant gold prices.

Gold price rises in the third quarter can be linked with an increase in demand from jewellers in India and Turkey who are preparing for the end of year vacation season and religious festivals.

Company chairman of Harmony Patrice Motsepe stated: "On the one hand, comfort is to be found in gold as a safe haven during times of strife and uncertainty, be this political or economic.

"On the other, the increasing consolidation of the gold industry by the majors has been more about maintaining production by grouping together operations where synergies are perceived, than finding new ounces."

This year has seen a 28 per cent rise in the average rand gold price which currently stands at around R140 000/kg (US $18,600).

Harmony Gold was established in 1950 and last year the company produced five million ounces of gold, predominantly in South Africa.

 

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