Australian gold production totalled 63 tonnes in the June 2007 quarter, a rise of 4.5% over the previous three month period, according to Melbourne mining consultants Surbiton Associates.

The company's latest quarterly report on the Australian gold industry indicates that gold production for 2006/07 was little changed on the previous corresponding period at 251 tonnes. This is worth Aus$6.6 billion at current gold prices.

Surbiton Associates director Dr Sandra Close says: "Two main factors contributed to the improvement in the June quarter. There was an overall increase in the grade of gold ore treated and some operations reported considerably higher output."

Conditions were more favourable in the June quarter compared with the March quarter when gold production was adversely affected by cyclonic weather in Western Australia. This had a negative impact on mining operations and forced some mines to treat lower grade stockpiled ore.

Operations which recorded higher output included Newmont Mining at Tanami with an increase in production of 26,000 ounces, and Newcrest Mining at Telfer and Cadia, with increases of 25,000 and 21,000 ounces respectively.

"Australian gold production may continue to improve," Sandra Close says. "There are a number of recycled operations which are coming back into production and building up to full capacity."

She noted that the June quarter included the first commercial production from the Union Reefs gold project in the Northern Territory, owned by Canada's GBS Gold International Inc. Union Reefs expects to produce at a rate of 35,000 to 40,000 ounces of gold a quarter when full capacity is reached later this year.

"It is encouraging to see the list of producers growing. As well as Union Reefs, there is View Resources Ltd's Bronzewing operation which poured its first gold in May; Monarch Gold Mining Co's Davyhurst mine which poured its first gold in August; and Mercator Gold which has just restarted Bluebird near Meekatharra. Also, Ramelius Resources Ltd's Burbanks plant is now treating ore from its new Wattle Dam mine."