Conditions of Buying and Production
The condition of commerce, of sales of the miner and the buying of the national industry, are crucial for the survival of both activities, in other words, in gold; in difference of other metals the margins of operation are very narrow. In the case of the miner for the costs of extraction, in the case of the industry because it gets to very competitive markets, where tariff prefferences exist for certain countries, quotas, sociable exportations of communist countries, etc.
There do not exist in subdeveloped countries beds similar to those worked in the United States or Australia, at open air of low law through pads with activated carbon and electrodepositions, where the costs reach to lower than 1Gr/T or less. It is supposed that the investments for this type of bed have not been produced due to the insecurity in the local gold price.
The costs of production of measured washers in Gr/T are also very high.
The alluvial or of filon handcraftmanship are benefitted with higher laws of the mineral, but normally with beds of reduced size and, in the same manner, with these acts due to the location and the reduced scale of production.
In these conditions of high costs of operation, the margination of the auriferous mining can not be admitted in a selective reactivation if it does not have good conditions of payment, in other words a real change.
In the same manner if prices of sales are established to industries which exceed to their type of exporting change, or the exporting change does not reflect the costs of manufacture which are governed by the free market, the industry will not be able to compete in the same terms with other countries.
Sad to say, in the past years the conditions have been highly unstable, in other words, the price of gold in both cases has not reflected the costs of production, without reffering to the international price, due to the changing selective policy.
The results have been seen in the graphs of the production, when there has been no realistic policy, the gold is not produced or lost.
We have sustained that the policy implemented by the Central Reserve Bank from May of 1987, with respect of the gold, was indispensible to move the production immediately, what in the practice has happened at very satisfactory levels. But we have also solicited that this politic be projected or guarantees at a long time lapse to allow the production the investments necessary of higher time of maturing.
You will be in agreement that there will be a great difference between the rentability of one valued project at MUC or valued at free banking and if these differences, past and present are projected at medium time lapse it will be very difficult to find some rentable projects.
What has happened until now has been to achieve an immediate increase of the production through the rapid transfer of masses of washers or of reactivation of projects of low investment, what is required from this moment on is the security of a good price to reach the impressions of great volume with long terms of development.