Australia hopes to seize golden opportunity

The strength of the current gold price is encouraging a re-launch of gold mining projects in Australia, according to industry consultant Surbiton Associates.

After falling to 249 tons in 2005-06, Australian gold output for 2006-2007 rose by 251 tons, bringing the domestic industry to an estimated value of $6.6 billion at the current gold price.

The current price, closing in New York at $673.20 per ounce on Friday, is thought to be a factor in encouraging the recycling of gold mining operations previously abandoned.

Among these is the Union Reefs project in the Norwest Territory, re-launched in 2006 and predicted by Canadian owners GBS Gold to be capable of an annual production of 300,000 ounces by 2009.

Sandra Close, managing director of Surbiton Associates, told Australian daily, The Age, of the promising prospects for "a number of recycled operations which are now coming back into production and building up to full capacity".

A gold mining renaissance in Australia could see its production of gold attract buyers and investors from around the world.

Indian newspaper the Economic Times reported a planned export of 40,000 ounces of gold from Australian gold mining firm Citigold Corporation into the Indian market.