According to the statistics published by the Chamber of Mines of South Africa, the country’s gold production has increased by nearly 83% in the last 10 years. Several gold refining firms in South Africa are going through a tough phase, and the closing of the gold bull-run has impacted the mining industry in several ways.
The country’s gold refining sector recorded 126,587 employees as of end-September as its payroll dropped by 14,461 in the initial nine-months of the year. These statistics were compared with the year start’s total payroll of 141,048, whereby, the jobs in the refining sector had witnessed a deep fall of over 10%.
Many factors have affected the conditions of the refining industry. Things such as ageing mines, falling gold prices, escalating operating costs, mine shut down, labor strikes, and more, have dented the growth of the country’s gold refining sector. Some other factors such as spreading labor unrests have affected the foreign investors’ values to negative.
It was at the same time when the country’s gold production shot up to 167 tonnes in 2012, the lowest recorded since the year 1905.
On the other hand, the year 2012 faced a high scale in production costs. Worker wages were increased by 12%, power tariffs to the mining segment by 238%, and fuel costs by 69%. It is because of all these rises, the South African gold refining sector has faced an incredible crisis.