Gold production in Australia, the world's third-largest miner, has fallen 7 percent over the past year, a deeper than expected decline, but should still rebound 10 percent in the year ahead, a government forecaster said on Monday.
Gold production is estimated at 231 tonnes, or about 7.6 million troy ounces, in the financial year ending June 30, down from a previous forecast of 243 tonnes due to the closure of old mines and below par output at some newer lodes across the outback, the Australian Bureau of Agricultural and Economic Resources (ABARE) said in its June quarter bulletin.
Output in the 2006/07 year came to 249 tonnes, equivalent to around one-tenth of the world's production. Output for next year was also revised down to 256 tonnes compared with a previous forecast for 268 tonnes, although the growth rate remains at over 9 percent, according to ABARE.
The drop comes as China flexes new-found muscles in gold as the world's top producer ahead of South Africa, traditionally the sector leader but also facing a decline. While physical gold production rates rarely have a major impact on prices, the decline in output has coincided with a sharp rally that pushed prices to a record $1,030.80 per ounce on March 17 before falling back to $905 on Monday.
Next year's tally in Australia could be even lower given a mounting power problem in the far west after a pipeline explosion on June 3 cut supplies to many of the mines, ABARE said.