Australia’s $27b bumper gold year

Australia’s gold mine output totalled 327 tonnes in 2020, a record for any calendar year and about 1.5 tonnes more than in 2019, according to consultants Surbiton Associates. In the December quarter of 2020, gold production rose by two tonnes to 83 tonnes compared with the September quarter 2020. “Although Australian gold production is remaining near record levels, we are seeing a significant overall drop in the grade of ore being treated,” Surbiton director Dr Sandra Close said. “This is a rational response to the higher gold prices during the year. “The 327 tonnes of gold (approximately 10.5 million ounces) produced in 2020 was worth $27 billion, based on the average daily Australian dollar gold price,” Dr Close said. “Australia is the world’s second largest gold producer and most of the gold is exported.” Uncertainty surrounding the coronavirus pandemic saw the gold price rise as the year progressed, setting an all-time record gold price on August 6 of $US2067 per ounce and $AU2868 per ounce. Subsequently prices have fallen but still remain relatively high. “When gold prices are high, the grade of ore can be reduced but the mine can still remain profitable,” Dr Close said. “Often this results in reduced output and the cost of production per ounce goes up – but at the moment operators are producing much the same amount of gold from lower grade material by increasing the throughput of their treatment plants. "Some mines have greater flexibility in selecting the grade of ore mined, while some have stockpiled lower grade material which can be blended with their run-of-mine ore.” Red River among new producers in 2021 Looking to 2021, there are several new or recommissioned operations expected to join the list of producers. Red River Resources today announced that it had poured first gold at its Hillgrove gold mine in New South Wales. The company - which also owns the Thalanga operation in North Queensland - completed the Hillgrove gold mine acquisition in August 2019 for $4 million in shares. The first gold bar poured at Hillgrove. Dr Close said small producer Kaiser Reef Ltd in Victoria was expected to commence in the March quarter 2021, while Ora Banda Mining at Davyhurst and Canada’s Novo Resources, both in WA, had poured their first gold in February 2021. Around mid-year Capricorn Metal’s Karlawinda operation should begin ramping up to an output of more than 100,000 ounces a year. “The ‘deal of the year’ for 2020 was the change of ownership of the Super Pit in Kalgoorlie,” Dr Close said. “The two equal joint venturers, Barrick Gold and Newmont sold their interests to Saracen Mineral Holdings and Northern Star Resources respectively, valuing Super Pit at around $US1.55 billion ($AU2.3 billion).” Australia’s largest producing gold mines for the calendar 2020 were: Operation Ounces Owner Cadia East 822,478 Newcrest Mining Boddington 670,000 Newmont Corp Fosterville 640,000 Kirkland Lake Gold Tanami 495,000 Newmont Corp Super Pit 453,194 Northern Star/Saracen

Australia’s $27b bumper gold year

Industry Queensland

Related News

New wells bring ‘step change’ for QPM energy business

Zeotech celebrates hard proof of metakaolin potential

Stanmore continues to advance Lancewood studies

Get access to breaking mining news, now.