Australia’s First-Quarter Gold Output Rises 6%, Surbiton Says

Australia’s gold production rose 6 percent in the first quarter as mining operations withstood cyclones that lashed the nation’s east and west coasts, a research group said.

Output in the world’s second-biggest gold-producing nation rose 4 metric tons from a year earlier to 65 tons in the three months to March 31, Sandra Close, director at Melbourne-based Surbiton Associates Pty, said in an e-mailed statement.

Two cyclones hit Western Australia state in January and February, while the eastern states battled rains and wind from cyclones Anthony and Yasi, blocking access roads to many mines.

“The abnormally wet weather impacted both open-cut and underground operations,” Close said. Mines had “performed well under the circumstances,” she said.

Gold reached a record on May 2 as investors sought to protect their wealth against accelerating inflation and concern about the debt positions of European nations. Citigroup Inc. raised its 2011 gold price forecast to $1,443 an ounce from $1,416 an ounce, analyst Jon Bergtheil said in a report dated May 20.

The Superpit, a venture between Newmont Mining Corp. (NEM) and Barrick Gold Corp. (ABX) located 550 kilometers (342 miles) east of Perth, was Australia’s largest producer during the quarter with 200,000 ounces, Surbiton said.

Source: http://www.bloomberg.com/news/2011-05-22/australia-s-first-quarter-gold-output-rises-6-surbiton-says.html