The crises of the gold mining sector
The critical issue facing the mining industry according to Zoli Diliza chief executive, chamber of mines is ensuring that the mineral policies of South Africa aligns with the highest standard of administrative justice, promote an internationally accepted level of security of tenure and invariably promote an enabling environment that will attract investors into south Africa, hence, improving her competitiveness.
Gold’s rarity, beauty and durability have ensured its use as a medium of exchange as well as astore of value
There has been a power crises issue in South Africa which has led to the shut down temporarily of major gold operations. This is a serious problem that in that there is limited capacity to bring the mine workers of the enclosed spaces in the mine due to ventilation breakdown. Continues power outages which have resulted in disrupted operations in the goldmines obviously have a significant impact on world gold supplies mine, this is one of the reasons South Africa is taking the backseat as the world’s largest producer of gold with china taking the front seat.(Lawrence William) (2008) ******It was recorded in 2010 that gold production was down to 200 tons. Despite the substantial increase in the real price of gold in recent years, there has been a continuous decline in gold production , unless substantive new capital investment in new mines is attracted the decline in production is likely to continue. There is also a decline in engineering and manufacturing activities associated directly to the gold mining industry. Inorder words, the consequence of the decline in gold production in south africa has been the loss of major sectors of South Africa's previous substantive heavy engineering and manufacturing capacity ****************** READ AGAIN The gold industry in the early 1990s experienced a tight profit squeeze and voilatility in prices, that period was also seen by rampant inflation. The pressure that...
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