Gold Production Falls

July 11, 2000

Gold Production Falls

Gold production in the first quarter fell to its lowest quarterly figure in almost two years, The Financial Times reports. Output was down 2% from the last quarter of 1999.

Lower grades of ore and mine closures account for most of the decrease. U.S.-based companies saw the largest drop in production, 6%, due to decreased output from Freeport McMoRan's giant Grasberg mine in Indonesia. Production costs also fell 2%, but total costs were only down 1%. South Africa had the highest cash costs at $228 per ounce, compared with just $160 for Canada.

- by Julia M. Duncan