§ Dr. TongeTo ask the Secretary of State for International Development what estimates she has made of the effect of UK gold sales on employment in South Africa. [99609]
§ Clare ShortThe world price of gold has been in decline for many years prior to the recent announcement of UK gold sales. The relatively modest size of UK gold sales is not sufficient to explain the fall in price of gold earlier this year. The price of gold has risen again since the second auction in September, and continues to fluctuate within a broad margin.
Employment in the gold mining sector in South Africa has fallen from around 385,000 in June 1995, to around 210,000 at present. South African mines are comparatively high cost producers—the present industry average in South Africa is about $230 per ounce, compared to about ․100 in parts of South America—and their relative contribution to the South African economy has been in decline for decades. Our development co-operation supports South Africa's efforts at economic diversification and employment creation.