South African Gold on the Brink With Half of Mines Losing Money
- Price slump means top four companies lose on 35% of mined ore
- Costs rising as workers demand more pay, clear way for strike
This article is for subscribers only.
South Africa’s gold mines, the deepest and among the oldest in the world, are in big trouble.
The four largest producers in the country are losing money on about 35 percent of production at current prices, according to company data compiled by Bloomberg. At the same time, higher costs are cutting into profits as electricity bills climb to a record. Workers are also pushing for wage increases, with some threatening to strike if salaries aren’t doubled.