Since the gold rushes of the 1850s Australia’s gold industry has been making a vital contribution to the country’s economic prosperity, generating wealth and underpinning global production. Moreover it is the lifeblood of many regional communities, creating jobs and educational opportunities, while providing vital infrastructure and boosting tourism.
REQ Report - September 2020
The latest Resources and Energy Quarterly (REQ), produced by the Federal Government’s Department of Industry, Innovation and Science, forecasts that in 2021 Australia will overtake China to become the world’s largest gold producer.
The REQ predicts the country’s gold mine production will rise by 1.3% in 2020–21 and 4.1% in 2021–22, to 369 and 384 tonnes respectively. Economists believe this potential will be propelled by production from new gold mines and higher output from existing projects. These include:
Capricorn Metals’ Karlawinda project (WA) - expected to be commissioned as a gold mine in mid-2021.
St Barbara Limited’s Gwalia project (WA) – the completion of the extension is expected to add approximately three tonnes of new output per year to the operation.
Evolution Mining’s Cowal gold mine (NSW) – the commencement of underground mining is expected to add to Australia’s total gold output from 2020–21.
Northern Star Resources and Saracen Mineral Holdings’ joint-venture Super Pit gold mine (WA) - production is expected to rise by 32% in 2020–21 to nearly 19 tonnes, following a new discovery of 591 tonnes of gold resource. The mine is expected to produce gold at 19 tonnes a year for another 15 years.
Having adapted their operations to ensure the health and safety of workers and the community, Australian gold miners have continued production during the COVID-19 pandemic. This has enabled them to strongly support both the regions in which they operate and the national economy.
In 2019-20 Australian production increased by 1.8% to 328 tonnes, with Australia remaining the world’s second largest gold producer. In the first half of 2020 production lifted by 4.4% year-on-year to 169 tonnes.
The report states that output over the past year was driven by improved production from several large gold mines in Victoria, South Australia, and Western Australia. These include Kirkland Lake Gold’s Fosterville mine in Victoria and Northern Star Resources Limited’s Jundee mine in WA.
The report states Australia’s gold exports increased by 29% in 2019–20 to a record high of $24 billion, a figure partly driven by higher USD and AUD gold prices. Australia’s gold export earnings are forecast to rise by 27% in 2020–21 to reach a record $31 billion.
The REQ confirms Australia’s gold exploration expenditure reached a record high of nearly $1.2 billion in 2019–20, up 20% from 2018–19, also driven by elevated gold prices. Gold accounted for 42% of Australia’s total mineral exploration expenditure (at $2.8 billion) in 2019–20. WA remained the centre of gold exploration activity in 2019–20, accounting for 68% (or $786 million) of Australia’s total gold exploration expenditure. It was followed by NSW at 9.9% (or $115 million) and Victoria at 9.6% (or $112 million).
Exploration expenditure and activity is fundamental to the future success of the industry. Importantly, it also provides employment opportunities in regional Australia while supporting local businesses.
A Golden Country
To provide further insights into the gold industry’s vast contribution to Australia, the Gold Industry Group released at the 2020 Diggers & Dealers Mining Forum an industry-wide economic and social impact brochure. It highlights the key economic and social impacts the gold industry has had in Australia since the early gold rushes of the 1850s.
Speaking at the Gold Industry Group and Deloitte annual breakfast event at Diggers & Dealers, Gold Industry Group Chairman and The Perth Mint Chief Executive Officer Richard Hayes said the new brochure would be a valuable tool for the industry.
“Our new social and economic impact brochure shows the value our industry has made to Australia,” Mr Hayes said.
“This document is a useful resource for anyone involved in the gold industry. It tells our story while offering benefits for recruitment, education and community engagement initiatives.
“We are the champions of the gold industry. We own our story and it’s up to us to tell it - and tell it powerfully,” he concluded.
The new brochure will further cultivate understanding and awareness of gold’s value to the social fabric of our communities and the significant role it plays in our national economy.
It will thereby complement the Gold Industry Group’s broad range of existing learning materials and National Gold Education Program.
Discover more gold facts and the many uses of the precious metal in everyday life.
Experience Australia’s golden country for yourself, via the free Heart of Gold Australia app.
ABOUT THE REQ
The Resources and Energy Quarterly (REQ) is a publication produced by the Australian Government’s Department of Industry, Innovation and Science, and contains the Office of the Chief Economist’s forecasts for the value, volume and price of Australia’s gold commodity exports.