Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
South African gold output contracted for a 13th consecutive month in October, the longest streak of declines in six years, as the industry battles unprofitable mines and labor strikes.
Gold production declined 15.1 percent from a year earlier, the Pretoria-based statistics office said Tuesday in a statement on its website. Total mining output rose 0.5 percent.
Key insights:
Dwindling output has cut gold’s contribution to little more than 1 percent of the South African economy, down from 3.8 percent in 1993. Unprofitable mines and demands for higher wages has led to job cuts in the industry, exacerbating unemployment in a country with a 27.5 percent jobless rate. The production of platinum-group metals surged 21.4 percent from a year earlier.
(By Rene Vollgraaff)
