Tuesday, 25th May 2004 (3141 views)

Australia's gold industry is remaining optimistic about production after heavy rain and tropical cyclones had a negative affect on gold production in the March quarter.

Output was down by 12 per cent on the previous quarter for March and was seven per cent lower than the same period the year before.

Dr Sandra Close, MD of Surbiton Associates, told Mining Weekly: "Production was expected to be down due to the extraordinarily wet weather. It ended up being the worst quarter in about ten years."

However Dr Close added that the downturn is most likely temporary and an upward pattern in gold production was still evident.

"In 2003 Australia displaced the US as the world's second largest gold producer. Australia should be able to maintain this ranking in 2004," she added.

Reportedly "another 30 tonnes or one million ounces of annual capacity" is expected for 2004, which is why overall production outlook is set to be positive.

Around three quarters of a tonne of gold are produced in Australia every day, with exploration for new deposits a key focus to boost production further.

 

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