Australia Gold Production Hit by Rain

Australia’s gold production declined 8 percent in the first quarter of the year compared to the previous quarter, hit by rains and possibly high gold prices, according to a report by mining consultants Surbiton Associates.

According to Surbiton Associates’ Australian Gold Quarterly Review, gold production declined to 60.3 tons from 65.9 tons in the fourth quarter of 2006. 60.2 tons of gold was produced in the first quarter of 2006.

Less ore of lower gold grades was treated during the quarter said managing director Sandra Close.

“Higher gold prices can lead to lower gold production as mine operators reduce the grade of ore fed into their treatment plants,” Close added.

Gold is one of Australia's top five single exports. In 2006, the country produced 249 tons of gold.