Australian Gold Production Hits 20-Year High - Surbiton Associates
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| Photo courtsey of Chris Fithall : Australia's Super Pit |
(Kitco News)- Australia’s gold production hitits highest level in two decades, according to mining consultants SurbitonAssociates.
According to the firm’s data,gold production for the June quarter totaled 81 tonnes, an increase of 9% or6.5 tonnes from the March quarter and up 8% from the same period in 2017.
For the financial year, thecountry’s gold production totaled 310 tonnes, its highest level since 1998.
“The 2017-18 output is 12 tonneshigher than for 2016-17 and only eight tonnes short of the record in 1997-98,while the latest quarterly figure is just 1.5 tonnes lower than the all-timequarterly record,” said Sandra Close, a director of Surbiton Associates, in apress release.
While Australia sees historicalgold production, the firm warned investors that this pace might not last asthere are a few issues the sector faces. She noted that Newmont Mining andBarrick Gold’s joint-venture project, the Super Pit, saw part of its northeast wallfail in mid-May, severely curtailing mining operations and ore haulage from themining areas near the base of the pit.
“Just counting the reduced numberof haul trucks coming out of the pit indicates that production will beaffected,” Close said. “Given the nature of the slip and the pit configuration,it appears that this will be the case for some time.”
The mining sector in WesternAustralia also continues to face the threat of rising royalty fees, which Closesaid could impact companies’ exploration budgets, which is critical for thenation to remain a global player in the gold market.
Close said that it was vital thatgold-mining companies maintained their spending on exploration and kept up thediscovery of new deposits, in order to replace the more than 300 tonnes of goldnow produced each year.
“Although production has risen,the Western Australian government must tread very carefully regarding anypossible increase in the royalty on gold,” Close said. “Increased royaltiesmust be paid for somehow and any extra impost could result in explorationbudgets being cut and exploration activity reduced.”
By Neils ChristensenFor Kitco News
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