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Australian production

slips slightly

ocal gold production slipped 8% in the September quarter, quarter is usually the strongest period of the year locally, but
Lallowing China to displace Australia at the top of the gold we do not know what the relative performance will be for both
mining table. countries.”
Australian gold miners produced 77t in the period, a 6t Dr Close put the fall in Australian output down to several
shortfall from the June quarter. Surbiton Associates director operational factors encountered during the quarter. Among
Dr Sandra Close said the reduction had seen Australia cede them was Newcrest Mining Ltd’s Cadia operation in New
its No.1 position back to China. South Wales, where production declined by 86,000oz (2.7t).
“With gold production figures now available for the first nine A replacement and upgrade to the SAG mill motor meant
months of 2021, it appears that China has taken the lead running the mill at only 60% capacity for the period. The
again as the world’s top gold producing country,” she said. company expected to complete the refurbishment of the mill
“Australia briefly became top producer for the first time, in November.
based on gold production figures for the first half of 2021. Newcrest also encountered problems at its Telfer mine
in Western Australia where production was down 20% to
101,000oz due to planned maintenance and lower head
grades from both open pit and underground sources.
Newmont Corp’s Boddington mine, also in WA, was hit by
severe weather, producing 30,000oz less than in June.
Production was also hampered by shovel reliability and
operational delays associated with the introduction of the
autonomous haulage system for its fleet of Caterpillar haul
trucks.
In Victoria, Kirkland Lake Gold Inc had its first setback on the
Fosterville mine with a 23,000oz reduction brought about by
lower grades.
Operations to deliver to the upside included newcomer
Capricorn Resources Ltd’s Karlawinda mine in WA which
produced 24,329oz in its first full quarter of production. Gold
Fields Ltd also enjoyed strong output at Granny Smith, with
gold production up 15,000oz to 78,900oz.
While labour and input costs continue to rise, Dr Close said
most Australian gold producers were still enjoying “healthy
profit margins”.
“As is always the case, the US dollar exchange rate has
been an important factor, with the Australian dollar gold price
remaining above $2,400/oz since mid-year,” she said.
According to Metals Focus, the global average AISC rose
Dr Sandra Close 3.6% in the September quarter to $US1,123/oz, its highest
level since mid-2013. The global average head grade
“It is a close-run thing as to which country will be the world’s improved by 0.5% quarter-on-quarter.
top gold producer for the whole of 2021. China has been No.1
Dr Close said the outlook for Australian production was rosy,
since 2007 but Australia is now challenging for that spot.”
with several projects under construction and in feasibility
According to figures released by the China Gold Association, study.
Chinese gold production was 236.75t for the first nine
“Exploration and drilling activity remains high in the gold
months of 2021, while Surbiton Associates’ detailed survey of
sector overall and IPOs and share issues are being well
Australian gold production totalled 234t for the same period.
supported,” she said.
“Much will depend on gold output reported for the final quarter
of the year,” Dr Close said. “We know that the December

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