Australian Output Rose In First Quarter As Compared With Same Quarter A Year Ago

Yesterday, a report said Australian gold output dropped by 7% as compared with the previous quarter. Because 2010 saw strong growth in output, though, that drop still made for a 6% rise from the first quarter of last year.

Mining companies operating in the second biggest gold mining country in the world produced a total output of 65 tonnes or 2.1 million ounces of the yellow metal in Q1. In comparison with the same period of last year, production increased by 4 tons – or 6%. Heavy rains between January and March led to mine floodings in both western and eastern states of the country.

Given that 1Q '11 beat 1Q '10, it's quite likely that all of '11 will beat all of '10.

Australian Gold Output Shrinks In First Quarter Of This Year

Due to heavy rainfall and cyclone activity, production in the first quarter of this year slumped by about 7% from the fourth quarter of last year: from 70 tonnes to 65.

On the east coast, Cyclone Anthony hit Queensland in January followed by Cyclone Yasi in February, in a period where most of the eastern seaboard and central Australia was soaked.

"The abnormally wet weather impacted both open cut and underground operations," Dr Close said.

"Access to ore and/or haulage from the mines to the processing plants caused a range of operational problems.

"Some mines had to cease production for several days while others had to process lower-grade stockpiled material."

Since the drop was weather-related, and output grew strongly last year, the growth trend is likely to resume this quarter.

Australia Still #2 In Gold Production

Mainland China is still the largest gold-producing nation, but Australia is comfortably ensconced in the #2 slot.

"Gold produced from Australian mines in 2010 was worth some 12 billion Australian dollars ($12.2 billion) at the current spot price," said Sandra Close, a director at Surbiton. "Gold remains one of Australia's top export earners."...

...Australian production reached 70 tons in the final three months of last year, up 12% on the year and 3% on the prior quarter.

It may surprise those who think that greenieism has a lock-hold on federal and state governments, but the United States is in third place. U.S. mines produced an estimated 20% more than South African mines last year.