Wednesday, 5th April 2006 (4311 views)

John Bowler, the Australian resources minister, has told the Perth gold conference that the only thing stopping Australia becoming the top gold-producing country in the world was floundering exploration levels.

The price of gold hit record heights Down Under last week and Mr Bowler claimed that if the precious metal did re-enter the spotlight currently occupied by other commodities, then the country could overtake its rival South Africa for the top spot in world gold.

"I don't think gold has come and gone," he told the conference. "I think it will have a future for forever and a day."

Mr Bowler claimed that if Australia could recapture similar levels of production to seven years ago, estimated at around 240 tonnes, then it would eclipse the currently declining production of South Africa, which last year generated 169 tonnes.

Referring to the encouraging price of gold, the minister touted an increase in exploration: "I think gold is going to shine again and I can see the drilling rigs getting back there in the bush and gold will have its day in the sun again," he declared.

Having fallen back slightly from the 25-year highs of last week, gold was trading at $584 in Sydney although economists foresee short-term gains for bullion as fears on supply persist alongside the currently strong levels of demand.

 

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