Canberra, Australia — MININGREVIEW.COM — 15 December 2008 – Global gold production may rise for the first time in four years in 2009 as China and Indonesia increase output.
Australia’s commodity forecaster – the Canberra-based Australian Bureau of Agricultural and Resource Economics – claims that mine production may increase to 2.476 metric tonnes in the 12 months ending 31 December 2009. This compares with its forecast for a 3% decline for 2008 to 2.400 tonnes.
“This increase reflects the expectation of some recovery in the grades of ores mined, particularly in Indonesia, and an assumed reduction in unscheduled mine disruptions,” the bureau said. New mines in China – including Sino Gold Mining Limited’s White Mountain – will help boost production, it added.
The bureau went on to say that the average price of the precious metal might drop 7% to US$810 an ounce, as weaker economic growth cut demand for a hedge against inflation. Still, that might be offset by investor demand for a haven should there be extended global financial market instability, it continued.
The report concluded with a prediction that production in Australia – the third-largest gold producer after China and South Africa – might fall 1% to 224 tons in the 12 months ended 30 June 2009.