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Tuesday, June 9, 2009.

From Creamer Media in Johannesburg, I'm Shannon O'Donnell.

Making headlines today:

New research analysis by Frost & Sullivan suggests that South Africa's gold output would continue to fall until at least 2014. Gold output has been in chronic decline for decades and last year slumped to its lowest level since 1922.

South Africa recorded output of only 220 tons in 2008. During the year, mining was suspended for the first time since the Anglo Boer War owing to power disruptions. In the 1970s, South Africa produced at levels of around 1 000 tons a year and was by far the world's leading producer.

Frost & Sullivan indicated that production would continue to decline "sharply in two to three years and then start recovering to levels around 241 tons of gold in 2014".

Metals and mining analyst Wonder Nyanjowa said that the depth of South Africa's ore bodies, together with rising operating costs and its influential unions, would present key challenges, despite the stronger gold price environment.

South Africa's National Union of Mineworkers said that it was demanding a 20% wage increase from world number-two platinum-miner Impala Platinum.

The above-inflation wage demand from platinum workers is more than the 15% wage increase that workers in the gold and coal mining sectors are demanding from employers.

NUM spokesperson Lesiba Sheshoka said that the union was demanding a 20% increase in order to bring entry-level wages to 5 000-rand a month, as workers had to deal with higher food and transport costs.

Also making headlines:

Diversified-miner BHP Billiton announces that it won't proceed with the Haju coal mine project, in Indonesia.
Liquidators open bids for Pamodzi Gold's East Rand assets.
The Japan Iron and Steel Federation opposes the Rio Tinto-BHP Billiton venture.
And, the South African mining sector wants a longer-term power pricing plan.

That's a round up of news making headlines today. For more on these and other stories please visit miningweekly.com.