BBC Asks: Is Sun Setting On South Africa's Gold Mines? - Gainesville Coins News
No Minimum order! We accept Pay with Credit Card
Call Us: (813) 482-9300 Mon-Fri 9:00AM-6:00PM EST
Login or Register
Log into your account
About Gainesville Coins ®
Billions Of Dollars Bought And Sold A+ BBB Rating 10+ Years No Hidden Fees Or Commissions All Inventory Ships Directly From Our Vault

BBC Asks: Is Sun Setting On South Africa's Gold Mines?

blog | Published On by
BBC Asks: Is Sun Setting On South Africa's Gold Mines?


The BBC gives a good, even-handed overview of the perils and difficulties facing precious metals mining companies in South Africa. Trapped between ever-escalating expenses, the need to dig ever deeper to get to the remaining gold, and the tumble in gold prices, the mining industry is in no position to acquiesce to labor unions' demands of up to 100% pay increases.

From the article:

Much of the easily accessible gold has already been taken out of the ground. That which lies in the deeper reefs is becoming increasingly costly and dangerous to get at. In addition to this, over the past five years, wages have increased by an average of 12.3% per year, compared with an average inflation rate of 5.9%. During the same time, gold production fell by 21%. Last year, the average worker produced 1.18kg of gold. In 2007, that figure was 1.49kg

One result of the labor squeeze on mining companies may be accelerated mechanization of the mines, putting thousands out of work.

This site uses cookies for analytics and to deliver personalized content. By continuing to browse our site, you agree that you have read and understand our Privacy Policy.