End of the golden age? SA now ties Sudan in 11th place for annual production

0:00
play article
Subscribers can listen to this article

Once the undisputed largest gold producer in the world, South Africa is now tied with Sudan for annual gold production in 11th place globally, according to new data from the US.

The United States Geological Survey on Tuesday published estimates of global gold production for 2020.

South Africa's production fell by 14% from 105 tons in 2019 to 90 tons in 2020, equal to that of Sudan and Uzbekistan.

For the second year running the largest African gold producer was Ghana, which mined 140 tons of gold .

In 2020, China was again the world's largest producer of bullion, producing about four times as much gold as South Africa.

A decade ago South Africa was still by far the continent's largest gold producer, mining 190 tons, almost twice as much as Ghana, while Sudan did not feature of the survey's list of top producers.

But a lack of new investment, rising costs, load shedding, decaying grades and the challenges of keeping some of the world's deepest mines operational have seen SA's share of the gold market shrink. 

One of the country's best-known producers, AngloGold, last year sold its remaining local assets to rival Harmony Gold as it exited South African operations after more than a century.

The Minerals Council this week said that while the gold price increase by about 45% in 2020 in rand terms, the outlook for new investment was poor. 

"In the absence of a structural solution to the electricity crisis in South Africa, the investment prospects of the sector are expected to remain bleak," it said in its overview for the year.

"The intermittent nature of the electricity supply has health and safety concerns, while the steep price trajectory of electricity tariffs is also a major concern from an input cost perspective."

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
15.27
(-1.48)
ZAR/GBP
21.24
(-1.16)
ZAR/EUR
18.29
(-0.69)
ZAR/AUD
11.81
(-0.95)
ZAR/JPY
0.14
(-0.59)
Gold
1694.95
(-0.92)
Silver
25.25
(-2.93)
Platinum
1124.00
(-2.85)
Brent Crude
63.94
(+2.19)
Palladium
2334.37
(+0.35)
All Share
67743.54
(-0.85)
Top 40
62250.03
(-0.97)
Financial 15
12674.59
(+0.82)
Industrial 25
87893.58
(-1.99)
Resource 10
69166.37
(-0.09)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 1059 votes
No, I did not.
52% - 2653 votes
My landlord refused
28% - 1434 votes
Vote