Australian gold production falls 7%

Gold production in Australia has fallen 7% over the past 12 months.

Output for the financial year to the end of June is estimated at 231 tonnes, down 12 tonnes on an earlier government forecast and 18 tonnes below 2006/07 output, which equated to around 10% of world production of the metal.

The forecast for 2008/09 has also been downwardly revised, from 268 tonnes, to 256 tonnes.

Australia’s Bureau of Agricultural and Economic Resources attributes the downturn to the closure of old mines and below par output at some newer lodes across the outback.

The Bureau points out that the 2008/09 prediction gives a growth rate of over 9% but analysts are not optimistic that the target will be met because a gas pipeline explosion earlier this month has reduced power supplies to many miners in Western Australia.

The region produces around 80% of the country’s gold and full repairs to the pipeline could take until the end of the year; 57% of supply should be restored by mid-August.

According to a report by news agency, Reuters, Newcrest Mining has already estimated that it will lose nearly one tonne of gold production at its Telfer mine as a result of the incident.