PERTH (miningweekly.com) – Gold production in Australia reduced by some 4% during 2012, to some 256 t, Melbourne-based consultants Surbiton Associates reported this week.

However, gold production during the three months to December rose nearly 8% from the previous three months, to some 67 t. This was also 1% higher than the December 2011 quarter.

“Several producers had to deal with short-term technical issues during the year, which reduced overall output,” Surbiton director Dr Sandra Close said.

“Despite this, total gold produced in 2012 was worth more than A$13-billion at current prices, making the gold sector a significant export earner.”

She added that the increased production in the December quarter reflected new mines coming on-stream, as well as improved performance from several established operations.

ASX-listed Regis Resources’ new Garden Well operation, in Western Australia, contributed almost 52 000 oz, some 34 000 oz more than for the previous quarter when it was still ramping up.

Major Newcrest Mining’s new Cadia East underground mine, in New South Wales, produced around 17 000 oz in the latest period, as it gradually moved towards full production. A further 12 000 oz came from Millennium Minerals’ Nullagine project, also in Western Australia, in its first quarter of production.

Close noted that several of the large Western Australian producers lifted their output in the December quarter, including Newmont’s Boddington mine, which was up 50 000 oz, and Newmont/Barrick’s Super pit, which was up 34 000 oz. The major's Telfer operation was also up 20 000 oz.

“Boddington’s performance made it the largest producer for the quarter. It was also the largest Australian operation for the full 2012 year, with output of almost three-quarters of a million ounces of gold,” said Close. 

She conjectured that higher production in the March quarter might be maintained, as output was often lower owing to the March quarter having fewer days all-up and also the fact that the cyclone season, with its high rainfall, often had an adverse impact on many operations.

Meanwhile, Close noted that there was a renewed focus in the Meekatharra area, some 750 km north-east of Perth. Reed Resources redeveloped the Bluebird operation, which was officially opened in February, following a A$20-million refurbishment. To the north, ASX-listed Doray Minerals was developing its new Andy Well mine, while Silver Lake Resources just poured the first gold from the redeveloped Murchison project, to the south.

Close said several smaller operators in the Kalgoorlie area were selling ore to, or having it toll treated by, larger companies that had existing treatment facilities. This allowed the smaller companies to avoid the cost and time delay of building and operating their own treatment plants.

“While there is considerable activity and new and recycled operations are coming on-stream, taking advantage of a prolonged period of higher gold prices, it should also be noted that several operations are doing it tough, as all mines have a finite life,” Close said.

“It is timely to point out, especially to politicians, that given the importance of the minerals industry to the Australian economy, ongoing exploration needs to be encouraged to ensure the industry’s long-term sustainability. It is essential to find new resources and reserves to replace those that are mined out.”

Close said that there was, however, an increasing concern regarding the availability of information on some operations in Australia, both for gold and for other metals and commodities.

“Where a publicly-listed mining or exploration company is taken over by a foreign government-owned or private corporation, there are no requirements for that organisation publicly to report its operational performance, exploration results, reserves and resources or its profitability.

“Once taken over and privatised, it simply disappears from view and is completely off the record,” Close said

“Given that these overseas companies exploit the mineral resources managed by the state governments on behalf of the people, they should be required periodically to report what they are doing, what they are producing and what profits they are making,” she added.