Gold Fields plans one million ounces a quarter

Johannesburg, South Africa — MININGREVIEW.COM — 14 June 2010 – Gold Fields Limited “’ Africa’s second- largest gold producer “’ plans to raise its output of the precious metal to one million ounces a quarter within the next two years.

“We would hope to get there within the next 18 to 24 months,” said CEO Nick Holland in an interview with Internet news service Moneyweb. “Achieving that target depends on progress at the company’s South Deep project in South Africa, the world’s biggest gold deposit,” he added.

“The quarterly production target is part of a larger goal of boosting annual gold output to five million ounces within five years,” Holland continued.  “It’s only a question of time.”

Bloomberg News reports that Gold Fields “’ which has mines in Ghana, Peru and Australia, “’ is seeking to reduce its reliance on South Africa, where it mines about 58% of its gold. Production of the metal in Africa’s largest economy is declining and companies are being forced to dig deeper to access shrinking reserves.

Prices for the metal are rising because of investor demand for gold as a store of value, climbing to a record $1 252.11 an ounce on June 8. Gold for immediate delivery added $3.80, or 0.3 %, to $1 220.35 an ounce in Johannesburg.

Gold Fields fell R1.01, or 1%, to R102.99 in Johannesburg, giving the company a market value of R72.6 billion. Shares in the miner have gained 10% during the last 12 months, compared with a 6.6% gain for Africa’s largest producer. AngloGold Ashanti Limited.