Emerging global superpower China has dethroned South Africa as the world’s largest gold producer after 102 years of holding the prestigious title, precious metals consultancy GFMS said on Thursday.
GFMS executive chairperson Philip Klapwijk drew attention to this historic event at the launch of GFMS’s Gold Survey 2007 — Update Two, saying that through continued growth China became the number one gold-producing country in 2007, snatching the title from South Africa, which had held the accolade since 1905.
In addition to China, higher mine output was seen in Indonesia, Brazil and Ghana, while Australian production was relatively stable.
But GFMS said gold producers were facing an increasingly challenging operating environment in 2007.
“Competition for consumables, labour and key plant items have hampered forthcoming projects and existing operations worldwide,” said GFMS.
This resulted in global gold-mine production recording only a modest contraction of just over 1% to total 2 444 tonnes in 2007.
Global output in the first half of 2008 is forecast to grow by just over 2%.
At a country level, Peruvian and South African production were worst hit in 2007, the former falling by a provisional 17% to its lowest level in five years.
The United States and Canada also suffered declines.
GFMS recorded an average rise in world total cash costs of 24% for the nine months ended September, partially attributable to increased mine development activities among many producers.
However, the consultancy identified that simple cash margins had remained stable at just below $300/oz, with the benefit of the higher prices seen in the second half of 2007.
Nevertheless, in the third quarter, average world total cash costs breached the $400/oz mark for the first time. — I-Net Bridge