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Gold Fields plans to triple gold ouput

Gold Fields
Limited’s South
Deep mine
Lima, Peru — MININGREVIEW.COM — 20 May 2010 – Gold Fields Limited “’ Africa’s second- biggest gold producer “’ plans to almost triple annual gold output from its South African and Peruvian mines as prices rise, according to company CEO Nick Holland.

“The company aims to produce 800 000 ounces a year at the South Deep mine in South Africa, and 1 million ounces annually from its Cerro Corona and Chucapaca deposits in Peru within four years,” Holland said in an interview here with Bloomberg News. South Deep and Cerro Corona produce a combined 625 000 ounces a year now, while the Chucapaca project is still being explored.

“South America will be an important part of the world for Gold Fields to be in,” Holland added. “We’d be happy to invest another US$750 million (R5.6 billion) in Peru,” he said

“Gold prices will probably rise as global output falls and investor demand climbs on concern that monetary expansion in Europe and the United States may fuel inflation, Holland continued. “Demand from exchange traded funds may rise to 3 000 metric tonnes from 1 800 tonnes now,” he estimated.

Gold futures for June delivery fell US$13.50, or 1.1%, to US$1 214.60 an ounce on the Comex division of the New York Mercantile Exchange. Prices have risen 31% over the past 12 months.