Australian gold production falls
PERTH (miningweekly.com) – Australia’s gold production declined by 6% in the March quarter to 76 t compared with 81 t produced in the December quarter 2021, Melbourne-based mining consultants Surbiton Associates reported this week.
The decline was partly owing to the effects of Covid-19 which restricted some operations, particularly in Western Australia, the nation’s largest gold-producing state, and also owing to considerable wet weather in several regions.
“The disruption to production was not uniform. Some operations were hit really hard while others were barely affected, both in regard to Covid-19 and also to bad weather, which is often a problem in the March quarter,” said Surbiton director Dr Sandra Close.
Close commented that the gold sector had done a remarkable job to keep up production but that now the impact of the virus has become widespread. Western Australia’s borders were finally re-opened on March 3 this year, having been closed to everyone, including fly-in fly-out workers, for 697 days.
Gold miner Westgold Resources lost the equivalent of 320 shifts between late February and late March, owing to Covid-19, and as a result, its forecast gold production was cut by about 3% to 4% in the March quarter. Silver Lake Resources withdrew its June quarter guidance owing to Covid-19 and supply chain disruptions, saying these made it impossible to give guidance with “an acceptable level of confidence”.
On the other side of the continent, Evolution Mining’s Cowal operation in New South Wales suffered a double whammy, said Close. The company said that 25% of its workers tested positive for Covid-19 during the quarter and that it also suffered “significant rainfall”.
In South Australia, Oz Minerals said a combination of Covid-19 and wet weather affected production at its Prominent Hill and Carapateena operations and estimated that 370 000 t of ore production were lost.
Among other operations to suffer reductions in output were Gold Fields’ St Ives mine which produced 16 600 fewer ounces and its Granny Smith operation, down 13 200 oz. Newmont also fared badly, with Tanami in the Northern Territory down 45 000 oz, while production at Boddington, Western Australia, was down 12 000 oz.
“Reduced output was not surprising given the circumstances. Additionally, there were the usual crop of mining, haulage and mechanical problems that the sector has to contend with every quarter,” Close said.
She said that there were also a few bright spots, with Newcrest’s Cadia operation in New South Wales increasing production by 34 000 oz, or more than a tonne. Also, Fosterville in Victoria increased output by 18 600 oz, as its Canadian ownership passed from Kirkland Lake Gold to Agnico Eagle Mines.
Joining the list of producers in the June 2022 quarter will be Calidus Resources’ Warrawoona operation, which poured its first gold on May 17, and Red 5, which is currently commissioning its King of the Hills plant near Leonora.
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