Strikes cripple 40% of South African gold production
Approximately 40% of South Africa’s gold production capacity is offline due to the combined impact of the ongoing illegal strikes at Gold Fields and AngloGold Ashanti’s operations in the country.
According to data from Roger Baxter, head of economics and strategy at the Chamber of Mines, about 2.36 million ounces of gold production, on an annualized basis, has been impacted by the strikes. This includes all of AngloGold Ashanti’s production.
“Any increase in wages that comes from these strikes could catalyze downsizing of the South African industry,” said SBG Securities analyst David Davis.
“I’m sure that Gold Fields will probably bring forward its downsizing [of its South African mines]. This is potentially catastrophic,” he added.
As of yesterday AngloGold Ashanti said no formal demands had be submitted by the striking workers.
Source (English): fin24