Tuesday, April 23, 2013

The job losses and mine closures start following the Gold Price Crush

Now that we are seeing the greatest demand for physical gold and silver in the history of the world the mine closures have started. Because we all know that in a free market when you have unprecedented demand for a commodity the producers of that commodity will need to lay off staff and curtail production.

From smh.com.au

Original source

Newcrest Mining cut 150 jobs during March and is reviewing the future of some mines with "considerable" focus, as the recent plunge in the gold price continues to take a toll on Australia's fourth biggest mineral export industry.

The gold industry held strong as other commodities began to slide over the past 18 months, but succumbed to a sharp slump over the past fortnight when the price fell by about $US300 to around $US1320 per ounce.

The Hidden Valley mine in Papua New Guinea, which Newcrest owns 50 per cent of in a joint venture with Harmony Gold, is one such mine, given it produced at a cost of $1790 per ounce in the March quarter.

Read more: http://www.smh.com.au/business/newcrest-mines-under-review-20130423-2ibfl.html#ixzz2RF36upU3

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