Sydney, Australia — MININGREVIEW.COM. — 29 November 2010 – Gold production in Australia “’ the world’s second biggest producer of the precious metal after China “’ rose 22% to 67t in the third quarter of 2010, as miners cashed in on strong bullion prices.
“We are now seeing the effects of re-evaluation of known deposits and the bringing of old mines back into production, as well as some new finds, so output is increasing,” said Sandra Close, director of Melbourne-based Surbiton Associates, which keeps a tally of Australian gold output.
Gold climbed to a record high price above US$1 400 an ounce this month, though prices have since staged a modest retreat.
But new-found strength in Australia’s currency is taking some of the shine off rising world bullion prices for the nation’s miners as they dig deeper for more nuggets, Close added.
The current Australian dollar-denominated gold price of A$1 409 per ounce is about A$150 an ounce below the all-time high of A$1 547 ounce reached in February 2009.
At that time, the U.S dollar-denominated gold price was US$989 per ounce, but the Australian dollar was worth only $0.64, Close said. “A 50% swing in the exchange rate in less than two years presents quite a challenge,” Close said.