Analyst comment

Australia’s gold production continues decline as costs rise and grades fall

Several gold mines have been placed under care and maintenance due to increasing costs and declining margins.

Powered by

Gold production in Australia is expected to recover marginally in 2025.

Australia’s gold mine production is predicted to fall for the fourth consecutive year in 2024 to 10.3 million ounces (moz), a 2.6% decrease from 2023. This will be primarily due to a planned reduction in head grades at the country’s major mines such as the Cadia, Boddington, Telfer, Fosterville and Tanami. Combined production from these mines is expected to decline from 1,785 thousand ounces (koz) in 2023 to 1,696.8koz in 2024.

Several mines have been placed under care and maintenance due to increasing costs and declining margins. These include Mount Morgans, Mount Carlton, Halls Creek, DeGrussa and Monty.

Operations in Western Australia also suffered from significant rainfall in March 2024, affecting production at gold mines such as Regis Resources, Capricorn Metals and Gold Road Resources Ltd.

This is likely to be partially offset by the start of the Bellevue, Paulsens Restart, Mount Morgan, Leonora and Devon Pit Extension projects in 2024, as well as the ramping up of the Penny and Norseman Gold projects.

Forecast for gold production in Australia to 2030. Source: GlobalData, Australian Department of Industry, Science and Resources

Overall, production is expected to recover in 2025, albeit by a marginal 0.7%, and then steady through to 2029 before decreasing in 2030. This short-term growth will be supported by project expansions and the scheduled start-up of projects including Yandal (2025), Trident (2025), Hemi (2026) and Mcphillamys (2028).

Overall, Australia's gold mine production is predicted to increase at a compound annual growth rate (CAGR) of 2.0% between 2024 and 2030, reaching 11.6moz. Growth is predicted to slow after 2028 due to the closure of key mines such as the Duketon South, Agnew/Lawlers and Beta Hunt.

Go to article: Home | From pit to portGo to article: Editor's letterGo to article: ContentsGo to article: MATO Company InsightGo to article: BriefingGo to article: News in NumbersGo to article: Latest NewsGo to article: Latest DealsGo to article: Trends & InsightGo to article: Cru Software Company InsightGo to article: Dotmar Engineering Company InsightGo to article: Quantified Strategies Software Solutions Company InsightGo to article: Trans Tasman Energy Group Company InsightGo to article: Geographe Company InsightGo to article: In DepthGo to article: Pit to port: ABB, AVEVA and Rockwell discuss the integrated mineGo to article: Cleaner fuels: a bridge to electrificationGo to article: Australian miners at the forefront of the robotics revolutionGo to article: Dewatered tailings: a risk reduction solution for Australia miners?Go to article: Can Australia step up its rare earths game?Go to article: With its critical mineral strategy, Australia seeks to break free from ChinaGo to article: Australia’s gold production continues decline as costs rise and grades fallGo to article: Dieci Australia Company InsightGo to article: Cirlock Company InsightGo to article: Steuler KCH Australia Company InsightGo to article: Sponsored SupplementsGo to article: Thematic Take: ESGGo to article: Thematic Take: contentsGo to article: Foreword: A growing sense of urgency in ESG Go to article: ESG 1.0 is over – get ready for ESG 2.0 Go to article: ESG becomes mandatory: how to prepareGo to article: Theme timeline: the past, present and future of ESG Go to article: Net-zero strategies for the mining sector Go to article: Leading mining companies in the race for net zeroGo to article: GlobalData’s Christopher Papadopoullos on net-zero strategy for businesses Go to article: Latest news: ESG in miningGo to article: 38% of companies lack an ESG strategy – GlobalData survey Go to article: Why sustainability reporting standards must be simple, consistent and transparentGo to article: GlobalData’s Thomas Pothalingam on the critical battery industryGo to article: Pentagon looks to AI to predict prices of critical minerals for weaponsGo to article: McKinsey’s Roland Rechtsteiner on the energy transition and commodities marketsGo to article: Deal activity related to ESG in the mining industry since 2021Go to article: ListingsGo to article: EventsGo to article: Event: QME24Go to article: Introducing the Mining Technology Excellence Awards 2024Go to article: Innovation RankingsGo to article: Buyer's GuidesGo to article: Next issue