World Gold Production to Decline 3 Percent Per Year - Cutifani

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AngloGold Ashanti CEO Mark Cutifani said the global gold industry has been in decline for the last seven years. He didn't know when the gold fundamentals would fully assert themselves, but mentioned it could take three to six months.

AngloGold Ashanti CEO Mark Cutifani expects gold production to drop 3% per year over the next five years as the gold industry has failed to make the necessary investment in the industry.

Cutifani said today gold production in the South African, Australian and North American industries was in decline, while production in the "brave new world" of South America and continental Africa was growing. However, the net effect was still a declining industry.

He said we were set to see another five years of decline in the industry as the industry had not seen the same amount of investment as other metals since the commodity boom. At the same time deep level mines were coming under increasing pressure.

The global gold industry has been in decline for the last seven years. Cutifani said he didn't know when the gold fundamentals would fully assert themselves, but mentioned it could take three to six months.

"We believe there is a structural break in the industry and we do believe fundamentals will drive an improvement in the gold price."

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