Volatile gold price slows mines startups

The decline in gold prices over the past two years has slowed new gold mine development worldwide, reports the London-based Mining Journal. The slowdown is most obvious in North America and Australia, which were at the forefront of the gold boom in the second half of the 1980s. In North America, new mine startups for the current year are projected at 22, compared with 42 in 1989 and 52 in 1988. In Australia, the corresponding figures are 7, against 19 and 41.

New mine production in North America is expected to drop to 2.8 million oz. this year from 3.2 million oz. in 1989. The report attributes the relatively slight decline to the size of some new projects coming on stream, particularly in Nevada.

Planned and actual new production in Australia totals 0.9 million oz. this year, compared with 1.8 million oz. in 1989.

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