Output of gold at its lowest since 1995 By JANE WILLIAMS 07mar05
AUSTRALIA'S gold output sank to a nine-year low in 2004 because of wet weather and plant closures.
Production for the year was down to 261 tonnes, 6.5 per cent less than 2003, Melbourne consulting group Surbiton Associates said.
Output in the December quarter was 66.6 tonnes, up slightly on the previous quarter but 9.5 per cent less than in the same period of 2003.
Production fell early in the year due to exceptionally wet weather in WA.
"The amount of gold produced in 2004 was the lowest since 1995," Surbiton managing director Sandra Close said, adding this did not help the widening current account deficit.
"The mining industry is the best hope of redressing Australia's appalling balance of trade. If the Federal Government is really serious, it should take steps to make all mineral exploration more attractive."
WA mines to close in 2004 included Sons of Gwalia, Hannans South, Kundana, New Celebration and Bronzewing. Sons of Gwalia went into receivership and its namesake operation near Leonora has exhausted ore supplies – as have Hannans South, Kundana and New Celebration.
Meanwhile, Bronzewing owner View Resources has shelved any reopening because of high contractor rates and skilled labour shortages.
The loss in output is a consequence of lower exploration spending and fewer discoveries, Dr Close said.
Australia was now producing about 50 tonnes of gold a year below its peak year of 1997. This represents a reduction of around $900 million a year in gold exports at current prices.
New gold capacity commissioned late in the year at St Ives and Telfer in WA and Cracow in Queensland, did not contribute much to 2004 figures.
Last year's figures from other countries are not yet available.
However, Australia is expected to rank behind South Africa as the world's second-largest gold producer.
South Africa produces about 345 tonnes, while the U.S. produces about 259 tonnes and China's output is about 212 tonnes.
Looking ahead Newcrest's Telfer mine and Cracow ramp up production along with St Ives - owned by Gold Fields Ltd - and several other operations come into production.
