Gold Fields CEO says global gold bullion supply to tighten on lack of mining funds
There will be a dip in gold production for sure but I think at investors sniff out this inflation coming down the pipe we will see a major flight to safety and that will be in money being invested in Gold Bullion and mining companies that are in or close to production. It also doesn’t help that Eskom Power in South Africa has had to reduce power to the mining companies that in turn has reduced production.
Global gold supply will likely contract as the financial crisis in the United States saps funds away from planned mining projects, Nick Holland, the chief executive of Gold Fields said on Friday.
“Some of the juniors and intermediate companies are not going to be able to develop their projects. And I think what this means is that mine supply in gold is probably going to decline more than what people realize,” Holland told Reuters.
The lead of the world’s fourth-largest gold producer, based in South Africa, was in Peru to inaugurate the company’s Cerro Corona mine.
He said miners will need to look for funding in less-conventional emerging markets, such as Peru, as traditional markets dry up. Gold Fields is the world’s fourth largest gold producer.