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Australian gold output edged up in the September quarter from the second quarter as new operations came into production, but fell slightly from the year-ago period, industry consultant Surbiton Associates said.
Production amounted to 62 tonnes, a tonne more than in the previous quarter but 2 tonnes less than in the corresponding period in 2005, it said in its latest quarterly report.
Production for the first nine months of 2006 totalled 183 tonnes, 14 tonnes or 7 percent less than in the first nine months of 2005.
"The higher production this quarter was due to 10 new or recycled operations starting up," said Sandra Close, Surbiton Associates managing director. These contributed 23,000 ounces.
"While this boosted overall output, the total amount of gold produced by existing mines remained relatively static," she said.
Existing gold producers were treating lower grade ore because of the higher Australian dollar gold price, she said.
Gold grades had declined progressively over the last nine months to bring the average recovered grade to just under 2 grams per tonne, she said.
Barrick Gold Corp's Cowal mine in New South Wales produced 45,000 ounces in the latest quarter, up by 29,000 ounces on the previous quarter as the operation ramps up to full production.
The Super Pit, owned equally by Barrick Gold and Newmont Mining Corp, regained its status as Australia's largest gold mine, with output rising by 14,000 ounces to 178,000 ounces.

Copyright Reuters, 2006

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