Australia's Gold Production Declines in 2011/12


"For the June quarter, gold output totaled 65t, some 2.5t or 4% greater than in the previous quarter."


Mining Weekly

Australian gold production decreased some 4%, or 11tonnes (t) to 261t, or 8.4 million ounces, during 2011/12, compared with the previous year, said gold mining consultants Surbiton Associates.

"The fall in production was not surprising, given the higher gold prices," said Surbiton director Dr. Sandra Close.

"However, with several new and rejuvenated projects coming on stream in late 2012, and in 2013, we should see production rise."

At the current spot price, the value of 2011/12 gold production was estimated at around AU$14-billion, which Close said contributed significantly to Australia's exports. The average Australian-dollar spot gold price for 2011/12 was around AU$1 620/oz, which was more than $230/oz higher than for the 2010/11 year.

"Overall, producers took advantage of the higher gold prices and made the most of their deposits by treating slightly lower-grade ore," Close said. "What is most critical is the margin between sales prices and costs." For the June quarter, gold output totalled 65t, some 2.5t or 4% greater than in the previous quarter. . .View Full Article

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