Boston, MA 10/16/2013 (wallstreetpr) – The plight of the gold miners in Africa is one of the most highlighted as to how pathetically they get treated. But now as an irony and in one of the good presses for the company, gold miners in Africa working for Barrick Gold Corporation (USA) (NYSE:ABX) are one of the highly paid workers. There are mainly two reasons for the salary increase. First is because of the depth of the mines that one has to travel and the second is the inflation in Africa. Inflation is up by 3 times since 2007. Both factors play a major role in the compensation increase to the rate of $558 per ounce as cost price to the company.
Some of the mines have to be dug up to 2.5 miles below the surface of the earth where the working conditions are not so good. With the humidity almost touching 100% and the temperatures soaring up to 60 degree Celsius, the workers demand more since high levels of tolerance need to be exhibited. Apart from the ability to survive in these conditions also these workers need to be provided with mandatory health insurances in the case of untoward incidences.
Gold prices slide since the start of the year
Kgalema Motlanthe, Deputy President of South Africa welcomed the change and stated that this must motivate the workers to increase their productivity and efficiency of work since the prices of gold are sliding down. Spot gold prices are at a 3 month low of $1251 per ounce and the prices are on their way to hit 16 year low.
Despite the lowering prices of gold, the share market saw an increase in the share price of the company by 3% on October 15, 2013.