Australia's gold production at all-time high

Australia's gold production has surged to a 15-year high in response to bumper gold prices prompting producers to maximize output.

NewsCorp reported on Monday that a production survey conducted by industry consultant Surbiton Associates found that gold output up to June totalled 292 tonnes (9.38 million ounces), worth 16.2 billion Australian dollars (12.24 billion U.S. dollars) at spot prices.

Surbiton director Sandra Close has advised the industry to turn more of its returns to exploration.

"Spending money on exploration for a mining company is like research and development spending for an industrial company," Close said.

"It is essential for the long-term survival of the industry."

She said producers had responded to the higher local gold price.

"Clearly ... many companies are keen to take advantage of the prevailing prices by using various strategies to maximize their gold output," Close said.

It has been a feature of the rise in the gold price that it has given owners of "stranded" gold deposits the chance to sell their ore to treatment plant owners or to have it toll treated.

Close said several companies were also looking to come into production in the near future by refurbishing old plants in order to increase the capacity in their treatment plants.Enditem