SA miners quit World Gold Council

Comment on this story
GoldBarplusbeads REUTERS Gold bars and granules. File photo: Reuters

Johannesburg - Gold Fields quit the World Gold Council to save money.

AngloGold Ashanti, the world’s third-biggest producer of the metal, also left the organisation.

Gold Fields’ decision was “purely a cost issue,” spokesman Willie Jacobsz said today by phone.

“Members pay per ounce of metal produced and with all the cost-cutting we’ve seen, especially here at Gold Fields, we’ve had a look very carefully at our membership of all sorts of organisations around the world.”

AngloGold spokesman Stewart Bailey couldn’t be reached for comment.

The WGC is the gold industry’s market-development organisation and its members include Barrick Gold and Newmont Mining, the largest producers.

The council “regrets” the departures, it said today in an e-mailed statement.

“We thank them for all their support and hope that there will be an opportunity in the future to welcome them back.”

AngloGold and Gold Fields have been slashing costs in the past year as they seek to adjust to a gold price that has fallen 21 percent since the beginning of last year.

Gold Fields chief executive Nick Holland led the council to adopt so-called all-in cost reporting for miners last year to give investors a better understanding of producers’ profit margins and help them compare performance.

Such expenses exceed traditional cash costs because they include outlays such as capital spending, administration and exploration. - Bloomberg News

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines