Gold News

Australian gold production falls

New figures released by mining consultants Surbiton Associates have shown gold output for the first three months of 2008 to have fallen sharply.

Gold production in March 2008 fell to seven tons, 12 per cent less than the comparative period for 2007, while the total output for the quarter was 53 tons, a drop of 16 per cent on the previous quarter.

Mine closures, high gold prices and poor weather conditions were blamed on the decrease, which could further support future gold prices as it decreases the global supply.

Surbiton director Sandra Close explained the rise in cost per ounce of extraction.

"The output from some mines was lower due to operational problems, which forced the operators to treat lower grade ore than planned.Also, wet weather caused some disruption. When costs have to be spread over fewer ounces produced, obviously the cash cost per ounce must rise," she said.

Australian gold mines fell behind those in America in terms of output during 2007, producing the least gold since 1994.

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