Australian gold production rose 22 percent to 67 tonnes in the third quarter of 2010 as miners cashed in on strong bullion prices, research released on Sunday shows.
Surbiton Associates, based in Melbourne, which keeps a tally of Australian gold output said "we are now seeing the effects of re-evaluation of known deposits and the bringing of old mines back into production, as well as some new finds, so output is increasing."
Showing the previous quarter was no flash in the pan, quarterly production of 67 tonnes was down only one third of a tonne on the June quarter, when gold production rose to its highest level in six-and-a-half years.
Strength in Australia's currency was taking some of the shine off rising world bullion prices for the nation's miners as they dig deeper for more nuggets, Sandra Close of Surbiton said.
The current Australian dollar-denominated gold price of A$1,409 per ounce is about A$150 an ounce below the all-time high of A$1,547 ounce reached in February 2009.
The result was in line with the year's upward trend in gold production, as established producers increased output, newly commissioned mines were ramped up and new or `recycled' operations came on stream
AngloGold Ashanti Ltd. this month approved development of the A$600 million ($583 million) Tropicana gold project in Western Australia.
December gold futures on the Comex division of the New York Mercantile Exchange rose $10.30, or 0.7%, to $1,362.60 per ounce. This occurred even though the dollar on Friday climbed to its strongest level against the euro in two months. Gold was even higher until Friday, when gains in the greenback exerted some pressure on commodities collectively.
Renewed hostilities on the Korean Peninsula and the ongoing European sovereign-debt saga are likely to remain in the forefront next week, and if so, could be supportive for gold.
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