Asante nets $500m forward purchase deal for gold produced at Bibiani
The Vancouver-based gold miner said it expects gold production at Bibiani to exceed 15,000 oz. per month by mid-year.
South African top gold producers AngloGold Ashanti (NYSE:AU) (JSE:ANG) (ASX: AGG), Harmony Gold (NYSE:HMY) and Sibanye Gold (NYSE:SBGL) were downgraded to sell on Monday by HSBC, which said the lower price of the metal is cutting margins at the company currently dealing with labour disputes.
The mining industry in Africa’s No.1 economy failed to contain costs during a decade-long bull market in gold and it is now badly placed to manage the pressures that come from lower prices, HSBC analysts led by Johannesburg-based Derryn Maade wrote in a note released last week, reports Commodity Fundamentals.
Gold producers represented by the Chamber of Mines of South Africa (CMSA), are in dispute with South Africa’s four biggest labour unions after they offered a 5% raise that was rejected by workers.
South Africa’s two main mining sectors, platinum and gold, are under pressure from spiralling costs and weaker commodity prices. Their representatives have warned than any significant increase in wages will risk more job losses and trigger closures.
The ongoing mining wage negotiations have been considered years and are expected to run until the end of the year.
Image from Wikimedia Commons
2 Comments
Frankinca
Avoiding Africa without being a countryman is making a good bet. The Africans feel they have been taken advantage of too long, and aren’t going to give much until there is desperation on both sides.
Michael Hall
The mines need to go back to basics and create a very flat top structure/Install good basic management structures to ensure the action works from the “Work Face” good communication/supervision with the “workforce” Practical experienced Management/Supervision teams on to take and be responsible from the “workface” and not be dictated by CEO’s and Directors This will increase better relationships with the workforce/increased safety/increased production at the work face.
The 30% cost to company which most Companies use to pay the “Non Productive Management ei.Enlarged/Balloon sized HUMAN RESOURCES DEPT’ that have taken over the mining Industry adding “Little Value” as they cannot seemingly even keep the Unions/representatives at bay, and when the SH@#$%^&*()T hits the fan they take a back seat. In my mining career we did not have call in the SAP to search the hostels, it was the responsibility of the Hostel Manager/Mine Security to ensure safety of persons on mine property/by not allowing weapons of any kind into the mine premises namely ,Hostels