Australian’s gold production rose almost three tonnes or four percent quarter-on-quarter to 72 tonnes in April-June, said Melbourne-based mining consultant Surbiton Associates said in a statement on Sunday.
“The increase in the June quarter was mostly the result of more ore being treated by some of the primary gold producers,” said Sandra Close, a Surbiton director.
Newmont Mining and Barrick Gold’s Super Pit at Kalgoorlie had lifted production by 44,000 ounces – back to its more usual level – while Newmont Mining’s Boddington and Tanami operations in Western Australia (WA) each produced 17,000 ounces more, she said.
ABM Resources’ Old Pirate mine in the Northern Territory started production and began treating ore using Tanami Gold’s Coyote treatment plant in the quarter.
Operations producing less gold included St Barbara’s Gwalia WA mine – where production fell by 20,000 ounces – and Gold Fields’ St Ives operation in WA, where output was 9,500 ounces lower.
Some of the base metal operations that produce gold as a by-product did not fare well in the April-June quarter, said Close.
Gold output at BHP Billion’s Olympic Dam in Southern Australia (SA) was down 17,000 ounces due to a mill outage which affected throughput, while output at Oz Minerals’ Prominent Hill in SA was 8,000 ounces lower as the production of copper was preferred over the treatment of gold-only ore.
Australia’s gold output had increased by one percent to around 285 tonnes in the July 1 2014-June 30 2015 financial year.
“Despite lower gold prices in US dollar terms, the depreciation of the Australian dollar is proving a blessing for Australian gold producers,” added Close. “Although the gold price averaged $1,192 per ounce in the June quarter, the Australian dollar gold price averaged A$1,532 per ounce.
ORE SHORTAGE AT SOME PLANTS
Some plants in the gold mining industry, especially in WA, are experiencing a shortage of ore, said Close.
“Sometimes, operations experience disruptions in the supply chain and if they do not have sufficient ore stockpiles, they have to cut production until adequate supplies can be re-established,” Close said.
“However, this can provide opportunities for small miners to sell their ore to the mill owners or alternatively to negotiate toll treatment arrangements whereby their ore is treated and they receive their gold as doré bars.”
An increasing number of small companies are taking advantage of the spare capacity at some of the larger operations and creating a win-win for both parties, she added.
For instance, ore from GME Resources’ Devon mine is being toll treated through Gold Fields’ Darlot mill near Leonora in WA, and just east of Kalgoorlie, Southern Gold’s Cannon ore will be toll treated at Metals X’s nearby Jubilee plant.
To the north of Kalgoorlie, ore from Phoenix Gold’s Castle Hill project will be sold to Norton Gold Mines for treatment at Paddington, while near Coolgardie, Kidman Resources plans to use Ramelius Resources’ mothballed Burbanks plant to treat ore from its Birthday Gift mine.
Australia is the world’s second largest producer of gold after China, which is estimated to have produced around 450 tonnes of gold in calendar year 2014, according to Surbiton.
The post Australia’s gold production up 4 pct in April-June – Surbiton appeared first on The Bullion Desk.
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