JOHANNESBURG (Scrap Register): South Africa, once the world’s biggest producer of the yellow metal, gold production has plunged by 16.2 percent during the month of May this year, lowest since February 2017 and the output revised 5.8 percent as compared to April, according to Statistics South Africa.
Total mining output declined sharply for a third month, dropping 2.6 percent from a year earlier compared with a revised 4.4 percent retreat in April.
Age old infrastructure, reserve depletion and accidents have raised the cost of production and have curbed Gold output in South Africa.
Mining companies came under added pressure late last year and in the start of 2018 from the stronger rand and have responded by closing shafts and cutting thousands of jobs in a labor-intensive industry.
Output of platinum-group metals, know for largest reserves increased by 9.6 percent from 6.3 percent contraction a month earlier for the first time in six months.