Gold could trade as high as $1 500/oz in 2009, the head of Africa’s second-biggest producer of the yellow metal said on Friday.

Gold Fields CEO Nick Holland said that the industry was operating slightly above break even at a gold price of $900/oz, not leaving room for profits.

“I don’t think the gold price has really performed anywhere near where it should have done, particularly given the rise in the commodity prices in other sectors, given the rise in the oil price, and particularly given the state of the economy in the US,” Holland said in a transcript of an interview posted on the company’s website.

“Certainly $800/oz I think is a very good floor price for gold. I don’t see it going below that. And secondly, the sky is the limit. You know, $1 000/oz by the end of the year and maybe $1 200/oz to $1 500/oz during 2009, I think, is very possible,” he added.

Meanwhile, presenting Gold Fields’ results for the year ended June 30, Holland said that he “wouldn’t be surprised” if gold were to trade at levels of around $1 000/oz to $1 200/oz, as the all-in costs of the industry had climbed to some $800/oz.

“I think gold has got substantial upside,” he stated, adding that he saw the metal trading at $1 000/oz by the end of the year.

CORPORATE RESTRUCTURE

Meanwhile, Holland stated that he had taken the decision to close down its Parktown head office in due course, and move to a smaller premises in Johannesburg.

This was as it redeployed its head office staff to locations closer to its operations.

The new head office would likely comprise some 50 people, who would focus on areas like strategy and group standards. The current corporate office houses some 140 staff, Holland stated.

The company would also probably open up a new office in Roodepoort, west of Johannesburg, so that management would be closer to its West Rand operations.

URANIUM DUMPS

In other news, Holland reported that the company would reach a decision in the next six months on what to do with its uranium-containing mine dumps, west of the city.

The call could even come sooner than that, he added.

The tailings dams contained 49-million pounds of the metal that is used to make nuclear fuel.

Holland said that the company would decide on the best way to commercialise this, with joint ventures a possibility.

Gold-miner AngloGold Ashanti was currently preparing to sell its West Rand mine dumps, which contain gold and uranium, and could conclude the process in the fourth quarter, it said on Thursday.