Two South African Miners Exit the World Gold Council

In a blow for the World Gold Council, the industry’s market-development organization, South African miners AngloGold Ashanti (NYSE:AU) and Gold Fields (NYSE:GFI) have decided not to renew their membership citing fees issues.

As members pay per ounce of metal produced, both companies said they had to look at the cost-benefits of staying in the organization, amid their efforts to adjust to a gold price that has dropped 21% since the beginning of 2013.

The WGC counts among its members most producers of the precious metal, including Barrick Gold Corp. (TSE:ABX) and Newmont Mining Corp. (NYSE:NEM), the world’s largest gold miners.

South Africa produced more than two-thirds of the world’s gold at its peak in the 1970s, but the sector has been in decline for years as shafts have matured. However, it remains a key global producer of platinum, with the country home to about 80% of the proven reserves.

via Mining.com

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza