Gold News

Further industrial action suspends gold mining

Another day of industrial action at gold mines in South Africa has further affected production.

Mining company Gold Fields - the fourth-largest gold producer worldwide - said that its Kloof mine had been severely affected by the protests, which were caused by increases in electricity prices.

The downturn in production could prove supportive for gold prices, since figures released this week by the World Gold Council show that demand for the precious metal continues to increase.

"Kloof is our second biggest mine and there is a 90 per cent stayaway there," commented Gold Fields spokesperson Daniel Thole.

Meanwhile, the company's South Deep mine surface operations, as well as the development and construction work, have been hit by near-total absenteeism.

He added that the estimated loss caused by the day's strikes will amount to around 95 kilograms.

Earlier this month, the Congress of South African Trade Unions called upon workers to cease mining in three provinces, which halted production at operations owned by Gold Fields and Harmony Gold, reported Bloomberg.

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