Monday, September 10, 2012

Gold Production Falls, But Miners Still Profitable


Australian gold production has fallen by 4 per cent over the last year.
A higher gold price has meant miners are now targeting lower grade ore and just 261 tonnes of the shiny metal was pulled from Aussie soil last financial year.
Dr Sandra Close, from mining consultancy firm Surbiton, says despite the drop, producers are still keeping their heads well above water.
"That's what's happened, they've been taking advantage of the high gold price and making the most of their deposits and treating slightly lower grade ore, so of course we have a little less gold," she said.
"But what's the most important thing there really is the margin between the sales price and the cost."

The Super Pit
The Super Pit at Kalgoorlie, WA, is currently 3.7 km long, 1.5 km wide and 450 metres deep and one of the largest gold producers in the world. (Emma Wynne)