Economics
World’s Deepest Gold Mines on a ‘Cliff’ as Virus Cuts Output
- South Africa’s high-cost gold mines depend on volumes
- Government is allowing mines to reopen with half their workers
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South Africa’s gold industry output has dwindled to a fifth of its 1970s’ peak as ever-deepening shafts and higher costs take their toll. The coronavirus may pose an even bigger threat.
The pandemic jeopardizes the future of a 134-year-old industry that once employed more than half a million workers on the world’s biggest gold field. While Cyril Ramaphosa’s government has been praised for its rapid response to the health crisis, the country’s five-week lockdown and the strict conditions attached to reopening gold mines risks undermining their viability.