higher gold price may boost production

Thursday, 30/12/2010

With the price of gold in excess of $1,400 an ounce, driven by a weak US dollar and unrelenting demand from China and India, and no new major gold deposits seemingly available, analysts are predicting that miners with marginal deposits may re-start production.

On the back of speculation that Bougainville Copper may re-open its copper and gold production, Pricewaterhouse Cooper's mining leader Tim Goldsmith said that it would be interesting to see if the higher prices made the miners move faster.

Miners in the north of WA had found some promising results, including Beadell Resources's Tropicana East Project 350km north-east of Kalgoorlie, and Focus Minerals Ltd planning longer-term projects in Coolgardie.

Worldwide gold supply remains at about 2,500 tonnes a year, despite a tripling of the gold price since 2002.

Australian gold production has risen 22 per cent in the year to November 2010.

Recycled gold now makes up 42 per cent of the gold supply.


http://www.abc.net.au/rural/news/content/201012/s3103787.htm