Australian Gold Output Climbs to Six-Year High, Boosted by Newcrest Mines

Australian Gold Output Climbs to Six-Year High, Boosted by Newcrest Mines

By Editors: [bn:PRSN=1] Indranil Ghosh [] - Aug 29, 2010 11:01 AM GMT+0500

Australia’s gold production in the June quarter gained 20 percent compared with the same period a year ago to reach the highest level in more than six years, aided by increased output from Newcrest Mining Ltd.’s Cadia Hill and Telfer mines, a research group said.

Production climbed to 67 metric tons, the highest level since December 2003, Sandra Close, a director of Surbiton Associates Pty that collates results from Australia’s gold- mining companies, said in an e-mailed statement. Output during the year ended June 30 climbed 11 percent to 245 tons, the Melbourne-based company said.

“The June quarter was somewhat of a ‘perfect storm’ for Australian gold production,” said Close. Higher gold prices were “one reason” for new mines coming on stream as well as production restarts, she said.

Gold is headed for a 10th annual gain and prices may reach at least $1,300 an ounce this year as investors seek a shield against financial turmoil, weak currencies and inflation, according to GFMS Ltd.