In 2009 gold has risen from $750 an ounce to over $1,000 an ounce, but at the same time, the value of the dollar has dropped from 10 rand to 7.5 rand to the dollar. In rand terms, the value of gold has not increased at all.
In addition, South African mines are more expensive to operate than elsewhere.
"In South Africa, gold is up to 3 miles deep. The cost of producing our gold is much higher than it is abroad, so this is another reason why mining companies need to contain their costs."
SHOOT: Salary increases are not the answer. Once you increase salaries, inflation [the average price of food and everything else] will also increase. The painful reality is that today, in whatever industry you're in, you're working harder for less. We're approaching fundamental limits to growth, while the human population increases unabated. What can you expect but diminishing returns under these conditions, and increased unemployment.