South Africa Gold Production Drops to Lowest since 1922

South African gold production fell last year to its lowest level since 1922. The world’s largest producer reported a fall of 7.5 per cent in gold output to 8.845m ounces in 2006. Roger Baxter, chief economist at South Africa’s Chamber of Mines said the rate of decline in South African gold mining production was likely to slow or possibly stabilise, depending on the outcome of certain key projects. Over the past ten years, South Africa’s annual gold production has halved as high grade mines have come to the end of their working lives.

Gold steadied at $645.20 a troy ounce – holding firm after Tuesday’s rise, its first gain in six sessions. Bulion has been under pressure from the volatility in equity markets as hedge funds have closed profitable positions in precious metals to pay for losses elsewhere.