PERTH (miningweekly.com) – Australian gold production reached 80 t during the three months to June, Melbourne-based gold consultants Surbiton Associates reports, with production up 11% on the rain-affected March quarter.

The gold output for the 2022/23 financial year totalled around 306 t, 10 t, or 9%, lower than in the previous financial year.

“Better weather allowed the gold mining industry to mine and treat higher tonnages in the June quarter this year,” said Surbiton director Dr Sandra Close.

“Around an extra three-million more tonnes of ore was processed and as there was less need to add low-grade ore from stockpiles to keep the treatment plants full, grades were also higher.”

Close said that last financial year’s gold output was worth almost A$30-billion at current gold prices of around A$3 000/oz. The Australian dollar gold price averaged A$2 956/oz in the June quarter, almost A$200/oz more than the A$2 762/oz recorded in the March quarter.

“We calculate that costs actually fell in the June quarter. This, plus the higher gold prices would suggest that those operations at the lower end of the cost curve are doing well,” Close said.

“It should be noted that provided the Newmont takeover of Newcrest proceeds, US-based Newmont, with its headquarters in Denver, Colorado, will own the three largest gold-producing mines in Australia.

Newmont’s Boddington gold/copper operation in Western Australia was by far the largest producer for the financial year, with output of almost 800 000 oz, or 25 t, of gold. The next largest operation was Newcrest’s Cadia in New South Wales, at around 200 000 oz less, with an output of almost 600 000 oz. It too produces gold and copper.

Tanami in the Northern Territory, also owned by Newmont, was the third-largest producer for the year at 440 000 oz. After a poor performance in the March quarter owing to wet weather, it increased production substantially by an extra 63 000 oz in the June quarter.

Additionally, the output from both Red 5’s King of the Hills operation and Ramelius’ Mt Magnet operation, both in Western Australia, increased by around 20 000 oz for the June quarter.

“Some junior companies are now toll treating small parcels to take advantage of the high Australian dollar gold price and to generate some welcome revenue. Also, Focus Minerals has just reopened its Three Mile Hill treatment plant at Coolgardie at last, after it has been idle for many years,” Close said.

There were a few closures, with both Aurelia’s Hera mine in New South Wales and Dacian’s Mt Morgan mine in Western Australia producing only small amounts of gold before being placed on care and maintenance.

“However, in the second half of 2023, several projects are due to begin production, either in their own right or by toll treating ore. These are all in Western Australia,” Close said.

“Of course, looking further forward, the announcement by Northern Star of a A$1.5-billion programme to enable treatment of their 120-million tonnes of lower grade stockpiles will significantly increase output at Kalgoorlie’s Super Pit for years to come,” Close said.