 PERTH (miningweekly.com) - Australian gold production rose by 13% in the December 2009 quarter, Melbourne-based industry consultants Surbiton Associates said in releasing its latest overview of the Australian gold sector.
Gold output rose by 7 t to 62 t, compared with the September quarter 2009, and by 14% compared with the December quarter 2008. For the full 2009 calendar year, Australia produced 227 t, or 7,3-million ounces of gold, an increase of 3% on the 2008 year.
“The increase in production to 227 t cemented Australia’s position as the world’s second-largest gold producing country,” said Surbiton Associates director Dr Sandra Close.
China was the largest producer in 2009 at 314 t, with preliminary figures putting the US third at about 216 t and South Africa fourth at about 210 t.
At the current Australian gold price of around A$1 250/oz, the 227 t produced in 2009 is worth over A$9-billion, making gold a significant contributor to Australian export earnings.
“The increase in Australian gold output in the December quarter was assisted by the long-awaited opening of the giant, redeveloped Boddington operation. As well, several other operations increased production substantially, taking advantage of the attractive gold price and attractive operating margins,” Close said.
The Boddington mine in Western Australia, owned by Newmont Mining Corp is still in the ramp-up phase and produced 118 000 oz or about 3,7 t of gold in the December quarter. It was redeveloped at a total cost of over A$3-billion and is expected to produce at a rate of more than 200 000 oz of gold a quarter this year.
Close noted that several of the larger producers increased output in the December quarter. These included the Super Pit at Kalgoorlie, also in Western Australia, with production up 28 000 oz and Cadia Hill with production up 23 000 oz, both owing to higher-grade ore.
Output at Yilgarn South operations, in Western Australia, also rose by 23 000 oz owing to a large increase in ore throughput.
Among the smaller producers, Ramelius Resources’ new, high-grade, underground mine at Wattle Dam, also in Western Australia, added 21 000 oz to the total.
“Gold production should increase in the near term, with the continued ramp-up of Boddington, plus output from additional producers in Western Australia. Despite the low level of exploration, which is still a real cause for concern in the longer term, the current attractive gold price and margins are fostering the redevelopment of old operations and there are even a few new developments as well.”
Focus Minerals recently recommissioned its Three Mile Hill treatment plant near Coolgardie, in Western Australia, and will no longer need to rely on scarce toll-milling capacity in the area. Saracen poured the first gold from its redeveloped Carosue Dam mine near Leonora, at the end of January, while Navigator Resources is expected to restart its Bronzewing operation in the next few weeks.
Meanwhile, Catalpa Resources should also begin producing in June from the rejuvenated Edna May project, at Westonia in Western Australia.
A1 Minerals’ BrightStar project north of Laverton is a new operation, which poured its first gold last week, while Integra Mining’s Randalls project and Regis Resources’ Moolart Well project are both new developments that are expected to produce their first gold in September.
The only operation expected to close shortly is Intrepid Resources’ Paulsens mine, in Western Australia, which produced about 16 000 oz in the December quarter.
Close said that several of the recently developed gold projects were owned by Australian companies, so that the level of foreign control in the industry has fallen since the major takeover activity in the late 1990s and early 2000s.
“From around 20% in 1997, overseas control of Australia’s gold mining industry peaked at over 70% in 2003. It then trended down slowly and was just under 60% by the end of 2009.”
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