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Thursday, 2nd November 2006 (4864 views)

Quarterly results from gold miners in South Africa have prompted assertions that gold is no longer a dying industry in the country.

Declining grades, a slide in the gold price and the increased costs associated with deeper mining have had a major impact on gold production in South Africa over recent years.

But new results for the three months to September show that South African miners are actually seeing their overall profits boosted by new gold operations in their home country.

According to Mining MX, while most of South Africa's miners intend to take advantage of big investment opportunities abroad, some of the most lucrative ones are still to be found on domestic soil.

Indeed, half of AngloGold Ashanti's gross profits now come from its South African operations, and the country also generates over half (53 per cent) of Gold Fields revenues.

Harmony is also benefiting from investment in South Africa. It moved into profit during the third quarter thanks to encouraging progress on several domestic projects.

 

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