Australia Gold Production Slightly Declines in 2011

Australia's total gold yield had barely moved in 2011 and two tonnes less than those registered in 2010.

Sandra Close, a director at mining consultant Surbiton Associates Pty. Ltd., said over the weekend that Australia, the world's second largest producer of the precious safe haven yellow metal gold next to China, mined only a total of 264 metric tonnes or 8.5 million troy ounces in 2011. It was 2 tonnes less from a year ago, Close added, citing data collated by Surbiton.

Further data from Surbiton showed Australia's gold produce in the final quarter of 2011 slid one per cent to 65 metric tonnes from the previous quarter, and down six per cent compared from a year ago.

Albeit the dismal production yield, higher gold prices still assisted most of Australia's gold miners to stay afloat and eventually helped boost their respective balance sheets.

Last year 2011 started with gold prices at below $1,400 an ounce. But as the world and its economic leaders U.S. and the European Union continued to wrestle with anxieties and fears over the maddening global fiscal crisis, the prices of the yellow metal gold soared above $1,800 an ounce in late August until early September 2011. It has since settled at the range of around A$1,600 or US$1,720 an ounce, but still A$200 or US$300 way above the prices recorded in early 2011.

Given current prices, Australia's 2011 gold volume production would translate to about $13.5 billion, Close said.

"The upward trend in the gold price over several years has certainly maintained activity in the gold sector in Australia," Dow Jones Newswires quoted Close as saying.

Barrick Gold Corp. and Newmont Mining Corp.'s jointly owned Super Pit mine produced 796,000 ounces of gold in 2011, followed by Newmont's Boddington at 742,000 ounces.

Newcrest Mining Ltd.'s Telfer mine in Western Australia gave out a total of 554,779 ounces of gold in 2011.

Last year's top three gold producing nations were China at 300 metric tonnes, Australia and the United States at 240 metric tonnes, data from Surbiton showed.