Soaring gold prices resulting from a loss of confidence in the dollar on world foreign exchange markets has put pressure on South Africa to increase its gold production.
GV EXT. South African bank
SV PAN Gold being smelted (2 shots)
MV PAN Rows of gold ingots (2 shots)
MV & SV's Gold being mined (4 shots)
MV's Mine shaft showing cage & miners in roadway (2 shots)
MV & GV Ore being shovelled into trucks (3 shots)
MV's & CU Gold being smelted (8 shots)
Initials ESP/0148 ESP/0240
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Background: Soaring gold prices resulting from a loss of confidence in the dollar on world foreign exchange markets has put pressure on South Africa to increase its gold production. South Africa is the world's largest producer of gold -- mining more than 70% of the world's output.
The South African Reserve Bank contains million of pounds worth o gold and, despite recent claims by economists, gold has held its position as vital international currency.
In many countries, gold production has declined. South African analysts say that existing plans to open three new mines will increase the Cape's gold output. However, investment in the three mines will run into hundreds of millions of pounds. This could result in South Africa demanding a higher price for gold.
During the current monetary crisis, gold reached a peak of 115 dollars per ounce on the London market. Wednesday's (16 May) closing price was 107 dollars (GBP42 sterling) per ounce.