(Kitco News) - Australia’s gold production declined by 6% in the March quarter to 76 t compared with 81 t produced in the December quarter 2021, according to mining consultants Surbiton Associates reported this week.
It was said that the decline was partly owing to the effects of Covid-19 which restricted some operations, particularly in Western Australia, the nation’s largest gold-producing state, and also owing to considerable wet weather in several regions.
The consultants said “The disruption to production was not uniform. Some operations were hit really hard while others were barely affected, both in regard to Covid-19 and also to bad weather, which is often a problem in the March quarter,” said Surbiton director Dr Sandra Close.
Close commented that the gold sector had done a remarkable job to keep up production but that now the impact of the virus has become widespread. Western Australia’s borders were finally re-opened on March 3 this year, having been closed to everyone, including fly-in fly-out workers, for 697 days.
Looking closer at the specific companies miner Westgold Resources lost the equivalent of 320 shifts between late February and late March, owing to Covid-19, and as a result, its forecast gold production was cut by about 3% to 4% in the March quarter. Silver Lake Resources withdrew its June quarter guidance owing to Covid-19 and supply chain disruptions, saying these made it impossible to give guidance with “an acceptable level of confidence”.
Over on the other side of Australia Evolution Mining’s Cowal operation in New South Wales suffered a double whammy, said Close. The company said that 25% of its workers tested positive for Covid-19 during the quarter and that it also suffered “significant rainfall”.
In the south, Oz Minerals said a combination of Covid-19 and wet weather affected production at its Prominent Hill and Carapateena operations and estimated that 370 000 t of ore production were lost.
Close said “Reduced output was not surprising given the circumstances. Additionally, there were the usual crop of mining, haulage and mechanical problems that the sector has to contend with every quarter,”. She added, there were also a few bright spots, with Newcrest’s Cadia operation in New South Wales increasing production by 34 000 oz, or more than a tonne. Also, Fosterville in Victoria increased output by 18 600 oz, as its Canadian ownership passed from Kirkland Lake Gold to Agnico Eagle Mines.
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