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Australian gold output falls three pct in 1999

MELBOURNE: Australian gold production fell by three percent in calendar 1999 to 301 tonnes from the record high of 312 tonnes in 1998, mining consulting group Surbiton Associates said on Sunday.

Output in the December 1999 quarter was 76.5 tonnes, one tonne above the September quarter but 4.5 tonnes or six percent below the 1998 December quarter.

Production fell in 1999 due to lower production at four of the five top producers, including a fall of nearly two tonnes from the Super Pit at Kalgoorlie in Western Australia. The pit is a joint venture between Normandy Mining Ltd and Homestake Mining Co.

"Gold production is holding up pretty well, despite the negative market sentiment," Surbiton managing director Sandra Close said.

She expected calendar 2000 output to remain around 300 tonnes.

"But the lack of exploration will mean fewer discoveries and lower gold output in the future."

Close said South African companies were now taking a keen interest in the Australian gold sector, recognising its stability, as well as its value and potential.-Reuters