Sunday, September 03, 2006

Australia's annual gold production fell five per cent last financial year, according to a new research report.

Gold production was 251 tonnes in 2005/06, from the previous year, according to the latest quarterly report on the Australian gold mining industry by Melbourne-based consultants Surbiton Associates.

The full financial year output was almost 15 tonnes or some five per cent less than production in 2004/05.

Surbiton attributed the lower result to rain-affected March 2006 quarter and subdued output in the June quarter.

In the second quarter, gold production totalled 61 tonnes, just half a tonne more than the previous quarter.

"Australia's gold output barely rose in the June quarter despite the better weather," said Surbiton managing director Dr Sandra Close.

"Production at several larger operations declined but this was offset by initial output from Barrick Gold's Cowal operation in NSW and better performances from AngloGold Ashanti's Sunrise Dam mine and Newcrest's Telfer operation."

Telfer produced 184,415 ounces in the June quarter displacing the Super Pit as Australia's largest gold mine.

Output at the Super Pit, owned by Barrick Gold and Newmont Mining, fell 12,000 ounces to 164,000 ounces due to a 10-day maintenance shutdown.

The top five gold Australian gold producing operations for the year were Super Pit with 700,000 ounces, Telfer with 650,016 ounces, Kanowna/Paddington with 514,651 ounces, St Ives/Lefroy with 496,408 ounces and Granites with 417,800 ounces.

Although overall gold output from established mines is little changed, several new companies and new operations are joining the list of producers, Surbiton said.

"The higher gold price, with a local record of A$933 per ounce on 12 May, has encouraged some of the junior explorers to get into production as soon as possible," Dr Close said.

"While some of the projects are only small, with the ore being sent for toll treatment, others are more substantial."

Dr Close said the smaller companies that are toll treating their ore are mostly located near Kalgoorlie in Western Australia.

Avoca Resources, Barra Resources, Kalgoorlie-Boulder Resources, Ramelius Resources and Reed Resources have all recently poured first gold, or are about to do so, according to the consultancy.

It also said Range Resources Ltd has poured the first gold at its Indee operation, as has Tanami Gold NL at Tanami, both of which are new operations.

Companies bringing old operations back into production include Gleneagle Gold, Renison Consolidated Mines and Haoma Mining.

"Completely new gold projects are thin on the ground, especially big ones," Dr Close said.