07 March 2004 11:04
Gold production rises in 2003, despite fall in $A prices
MELBOURNE, March 7 AAP - Australia's gold production increased five per cent in 2003, with investors undeterred
by a sharp fall in the Australian dollar gold price, according to a mining industry study released today. Australian
gold production had picked up substantially since falling from its peak in 1997 down to 275 tonnes in 2002, with
production in 2003 rising to 290 tonnes, Melbourne-based mining consultants Surbiton Associates said. "The upward
trend is now firmly established and the outlook in the medium term looks positive," Surbiton Associates'
managing director Sandra Close said. Overall, the average Australian dollar gold price was lower in 2003 than in the
previous year, with the spot gold price averaging $A559 an ounce for 2003 against $A570 an ounce for 2002. The price,
currently around $A520 an ounce, was more than $A100 an ounce less than the $A645 an ounce high recorded in February
2003. "Despite the rising US dollar gold price, the strength of the Australian dollar has reduced the gold price in
local terms," Dr Close said. But while it was the Australian dollar price which determined the profitability of
Australian gold mines, investors so far seemed undeterred, with the higher US dollar gold price and the weaker US
currency focusing investors' interest back on gold and the mining sector. Dr Close also said smaller
Australian-based mining and exploration groups were finding it easier to raise capital and the number of new mining
companies listing on the Australian Stock Exchange was rising. On a quarterly basis, Australian gold output reached 73
tonnes in the December 2003 quarter, up two per cent on the previous corresponding quarter. "Toll treatment of ore
is also boosting output," Dr Close said. "Existing producers are taking advantage of spare capacity at other
plants and some of the smaller explorers are using toll treatment to fast track production." Deep Yellow Ltd will
begin gold production this month, with ore from its Mikado deposit near Laverton in Western Australia being toll treated
at Sons of Gwalia Ltd's Tarmoola plant. Siberia Mining Corp expects to commence production in April, by toll
treating its ore through Croesus Mining Ltd's Davyhurst plant. But despite the new projects coming on line the
March quarter could see a temporary fall in Australian gold output because of wet conditions caused by cyclones early
this year. The top five producers for the 2003 year were Newmont Mining Ltd and Barrick Gold Corp's Super Pit which
produced 872,196 ounces and Newmont's Granites/Groundrush operations which produced 629,670 ounces. Gold Fields
Ltd's St Ives mine produced 526,534 ounces, Newcrest Mining Ltd's Ridgeway produced 458,708 ounces and Placer
Dome Inc's Kalgoorlie West venture produced 396,254 ounces. AAP jw/sjh/jlw
[AAP News] |
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