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Australian gold production at an 11-year high WA Country Hour By...

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    Australian gold production at an 11-year high

    WA Country Hour
    By Tara de Landgrafft
    2


    Posted yesterday at 6:04pm
    PHOTO: Dr Sandra Close from mining consultancy firm Surbiton Associates(Tara De Landgrafft)
    MAP: Esperance 6450
    Australian gold production is at an 11-year high, according to the latest industry figures.
    In 2014 miners pulled 284 four tonne of the shiny metal out of the ground, a four per cent increase year-on-year.
    Dr Sandra Close from mining consultancy firm Surbiton Associates said the rise was not necessarily all good news.
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    AUDIO: Dr Sandra Close from Surbiton Associates talks about the record high gold production from Australian gold mines in 2014 (ABC Rural)

    She said the falling US gold price had lead to miners being forced to chase higher grade ores to survive.
    "Yeah, superficially it's pretty good and it gives the impression that the industry is healthy and vibrant but you've got to dig a little deeper because there are other aspects to it," she said.
    "What's happening is, with the lower prices in the last few years, miners are increasing the grade of ore that they mine, they are also treating a little more material to help them along.
    "They are all doing the same thing and what they are doing is increasing the cut off grade and ensuring that they mine a little more gold to keep their profitability higher.
    "So that has some negative connotations because what it means is, the life of the ore bodies will be reduced a little and some gold will be left in the ground because it is uneconomic to mine it."


    http://www.abc.net.au/news/2015-03-02/australian-gold-production-reaches-eleven-year-high/6273592
 
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