Australia’s gold sector picked up speed in the June quarter as output in the past year returned to near-peak levels valued at over A$50 billion ($32.8 billion), while Australian-owned miners made up just about one-quarter of the producers, Melbourne-based Surbiton Associates says.
The 12-month total reached 300 tonnes, or about 9.7 million oz., the highest since the 2022–23 tally but below the 1999–2000 record of 328 tonnes. Australian mines produced 76 tonnes gold in the three months ended June 30, up three tonnes (4%) from March.
“The gold mining industry in Australia is highly efficient, very productive and vitally important,” Surbiton director Sandra Close said last week in a media statement.
At a gold price near $3,400 per oz., the output is comes to more than A$50 billion, making gold Australia’s fourth-largest export after iron ore, coal and liquefied natural gas. Gold exports alone are worth about half of the nation’s farming, forestry and fishing exports combined, the consultancy said.
Stronger bullion and geopolitical tensions – from the Middle East to Russia’s war in Ukraine – have been factors in the price rise. Output growth is still somewhat capped. Operators are mixing in low-grade stockpiles, which accounted for just over 15% of mill feed in June. This reduces head grades and prolongs mine life.
Shifting landscape
Ownership is changing, the associates note. Overseas firms control about 45% of Australia’s gold sector. This number is likely to rise with Gold Fields’ (NYSE, JSE: GFI) A$3.7 billion purchase of Gold Road Resources (ASX: GOR), expected to finalize later this month. The companies co-own the Gruyere mine.
Among the country’s five largest producers during the year, Australian control was just 24%, Surbiton said.
Top producers
The biggest operations over the past year were Newmont’s (TSX: NGT; NYSE: NEM) Boddington mine at 574,000 oz.; the Tropicana mine, a 70-30 partnership between AngloGold Ashanti (JSE: ANG; NYSE: AU) and Regis Resources (ASX: RRL) at 466,072 oz.; Newmont’s Cadia at 432,000 oz.; Northern Star Resources’ (ASX: NST) Super Pit at 405,415 oz.; and Newmont’s Tanami at 387,000 ounces.
In the most recent quarter, Boddington led with 147,000 oz., followed by the Super Pit with 117,367 oz., Cadia with 104,000 oz., Gold Fields’ St Ives with 99,200 oz., and Tropicana with 93,780 ounces.
Gruyere, discovered by Gold Road in 2013 and in production since 2019, delivered 305,000 oz. in the 12-month period and is to reach a pit depth of at least 500 metres.
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