South African Gold Output Plunges by 46% as Strikes Close Mines

South African gold output plunged by 46 percent in October as a wave of labor strikes in the country idled the continent’s biggest mines.

Iron-ore production fell 23 percent and chrome 19 percent after unrest in platinum mining spread. Statistics SA released the production statistics today on its website.

AngloGold Ashanti Ltd. and Gold Fields Ltd., the world’s third and fourth-largest gold producers, were forced to close all their local mines in October because of strikes. The unrest will probably cost the economy about half a percentage point of growth, National Treasury Director General Lungisa Fuzile said.

Workers at Lonmin Plc, the world’s third-largest producer of the metal, ended a six-week strike on Sept. 20 after being awarded pay increases of 11 percent to 22 percent. South Africa’s inflation rate was 5.5 percent that month.

To contact the reporter on this story: Carli Cooke in Johannesburg at clourens@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.