Australia gold prodn at more than 5-yr low-survey
Sunday November 18, 8:00 am Eastern Time
SYDNEY, Nov 18 (Reuters) - Australian gold production in the September quarter fell to its lowest
level in over five years, despite increasing foreign investment in the A$5 billion (US$2.6 billion) a year
industry, according to a survey released on Sunday.
``Gold output fell by eight percent to 68.5 tonnes
compared with the June quarter figure of 74.5 tonnes,'' said mining consulting group
Surbiton Associates in a research report.
Surbiton Associates managing director Sandra Close said offshore investors had much more
interest in Australian gold assets than local investors, with recent takeover bids only
increasing foreign ownership.
``Surbiton Associates estimates that overseas control of Australia's gold production rose
from around 20 percent five years ago to around 30 percent a year ago. With changes this
year, including a Normandy takeover, overseas control will double to around 60 percent,''
Close said.
Australia's largest gold miner Normandy Ltd (Australia:NDY.AX - news), which produced 2.3 million ounces of gold in the 2000/01
financial year, is the prize in a takeover battle currently being waged by South Africa's AngloGold Ltd and the Denver-based Newmont
Mining Corp (NYSE:NEM - news).
Other mergers include Goldfields Ltd (Australia:GLD.AX - news) and Delta Gold Ltd (Australia:DGD.AX - news), although the merged
group is seen as a target for South Africa's Gold Fields , which has already agreed to buy the gold assets of WMC Ltd
(Australia:WMC.AX - news) for US$232 million.
Elsewhere, South Africa's Harmony Gold Ltd has agreed to take a 31.5 percent stake in Bendigo Mining NL (Australia:BDG.AX -
news) which is developing a mine it hopes will yield more than 400,000 ounces of gold per year. |
