aus "The Australian Mining Journal" am 04.06.04
WA CYCLONES CURB GOLD PRODUCTION
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Australia's gold output fell sharply in the March 2004 quarter as heavy rain from tropical cyclones dislocated production at many gold operations in Western Australia during the period, Melbourne-based Surbiton Associates said in its latest quarterly report.
March quarter gold output totalled 64 tonnes (2.1 million ounces), down 9 tonnes (12 percent) from the previous quarter's production. Output was 4 tonnes (7 percent) lower than the March quarter in 2003.
“Production was expected to be down due to the extraordinarily wet weather,” said Dr Sandra Close, Surbiton's managing director. “It ended up being the worst quarter in about ten years.”
Despite the poor start to the year, Dr Close said that the downturn should only be temporary and overall the upward trend in gold production remains intact.
“In 2003 Australia displaced the United States as the world's second largest gold producer,”
Dr Close said. “Australia should be able to maintain this ranking in 2004.”
Cyclone Monty hit Western Australia in late February and Cyclone Fay followed in mid to late March. Production was affected at most operations and some reported extreme weather conditions.
Placer Dome's Wallaby open pit near Laverton suffered a “massive rainfall event” in late February, while at AngloGold Ashanti's nearby Sunrise Dam pit, access to the high grade areas was limited for almost half of the quarter. Cyclone Fay dumped 360mm (over 14 inches) of rain on Telfer in 48 hours in late March, which Newcrest Mining Ltd described as being “in excess of a 100-year event”.
“In all, the industry treated almost 2 million tonnes of ore less than in the previous quarter,” Dr Close said. “Grades were also down as lower grade stockpiled material was used to maintain throughput.”
Dr Close said that another factor contributing to the low result is that the January to March period has fewer days than the other quarters. About three-quarters of a tonne (around 25,000 ounces) of gold are produced in Australia each day.
Also contributing to the downturn in the March quarter
were the closure of Sons of Gwalia's Gwalia treatment plant
and Placer Dome's Kundana plant, plus mechanical problems at several operations.
The top five producers for the March quarter 2004 were:
Operation
Ounces
Owner
Super Pit – JV
204,424
Newmont Mining Corp 50%, Barrick Gold Corp 50%
Tanami/Groundrush*
165,400
Newmont Mining Corp
St Ives
131,786
Gold Fields Ltd
Ridgeway
97,572
Newcrest Mining Ltd
Sunrise Dam
86,582
AngloGold Ltd
* two plants
Surbiton Associates' gold production figures include all gold produced in Australia from gold mines and by-product gold produced from base metal mines.
Dr Close stressed that the recent January to March quarter was unusual and did not herald an overall downturn in the industry.
“At least another 30 tonnes or 1 million ounces of annual capacity is scheduled to come on stream by end 2004,” Dr Close said. “That's why the overall production trend is still expected to be positive.”
While the redevelopment of Telfer will provide much of this extra capacity, redevelopment of Cracow and Perseverance and the new mill at St Ives will also make significant contributions.
“Despite this favourable outlook, most of the extra ounces are from
redevelopment of known deposits,”
Dr Close said. “Exploration for new deposits must remain a top priority.
AJM Magazine
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