Australia’s $19b Gold Industry on Edge of ‘Production Cliff’ as Mines Run Out of Gold
The comments below are an edited and abridged synopsis of an article by Jarrod Lucas
Australia is on the edge of a production cliff and could slip from second to fourth on a list of the world’s biggest gold producing nations by 2024, mining analysts have warned.
Australia’s biggest gold mines are getting older, and not enough new discoveries are being made to replace them. Global gold production will likely decline from 2022 onward.
Behind only China, Australia’s gold mines will produce an estimated 10.7 million ounces this year—the equivalent of about $19.2 billions’ worth of the precious metal. But analysts predict that Canada and Russia will overtake Australia, with production to fall more than 40% to 6.3 million ounces over the next five years.
With the Australian dollar gold price trading near historic highs of about $1,820 an ounce, that could represent about $8 billion in lost production.
Up for discussion: Aging mines are running out of gold; this research is dismissed by Perth Mint; Australia’s big cheese among gold miners; exploration dollars are key to finding new discoveries; Australia’s largest gold producers in 2018; going strong, but how long can mine reserves last.