6 challenges facing the gold sector – Gold Fields
In its Annual Review for 2012, Gold Fields recaps the biggest issues facing the sector and what they imply.
Anyone that has followed the gold sector over the last 12 months should be fairly aware of the challenges gold miners faced last year.
As a significant producer, across a number of continents, Gold Fields is probably better aware of them than others and, in its Annual Review for the year to end December 2012, it paints a fairly gloomy picture, outlining 6 issues that kept management up at night last year and are likely to continue to pose problems in 2013.
The first issue Gold Fields lists, Industrial action in the South African mining sector, is the least important from a global point of view, as it only affects those gold miners with operations in the country. Gold Fields is of the opinion that some of the fears around the longer term implications of the strikes on South Africa’s viability as a mining destination have been overdone.
But, it does point out that: “The strikes (and associated violence) acted as a powerful reminder that despite the obvious cultural and legal transformation that has taken place since South Africa’s democratic transition, there are significant socioeconomic challenges that (for the majority of citizens) remain largely unchanged. As such, there is increasing consensus within South African society that genuine transformation of wider society is required – above and beyond the relatively narrow boundaries of existing Black Economic Empowerment legislation.”
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