Rising gold output from new projects and mine expansions in Australia is expected to lift the country's production to a high of 318 mt (10.2 million oz) in fiscal year 2018-19, up 12.1% from the 284 mt produced in 2015-16, the Department of Industry, Innovation and Science said Friday.
Australian miners were expected to produce 2.5% more gold in the current 2016-17 year at 291 mt, and a 4.1% rise in 2017-18 to 303 mt, DIIS said in a quarterly report on the resources and energy sectors.
Among new projects expected to produce gold in the short run was Vista Gold's Mount Todd project in Northern Territory and likely to begin production in 2018 with 18 mt in the first year of operation, according to DIIS.
Focus Minerals is looking to start pouring gold from its Coolgardie project in Western Australia in the next year, with annual output estimated at 3.7 mt each year from 2018-22. The Citigold-operated Charters Towers project in Queensland was expected to launch gold production in 2019, with subsequent ramp-up activities to lift output to more than 7.8 mt in 2022.
Top global gold miner Newmont is investing $100 million-$120 million to expand its Tanami mine in Northern Territory and maintain the project's gold output at 13.7 mt over the next five years, DIIS said.
Closures of several mines in the medium term would put a lid on further gold production growth in Australia from 2019-20 onwards, with output likely to decline to 270 mt in 2021-22, it said.
Meanwhile, the report also forecast Australian gold exports would top 334 mt in 2018-19, due to the peak in mine production. While declining mine production will weigh on exports volumes in the following two fiscal years, DIIS expected lower domestic supply will be partly offset by imported ore to be refined in Australia.
Australia's fiscal year runs from July 1 to the following June 30.
