Australian H1 gold output contracts as Chinese production races ahead

Australian 2012 first half gold output has fallen 5% year on year while Chinese production has gained 7%.

The Australian cites figures from international metals consultancy GFMS as indicating that production by Australian gold miners contracted 5% in the first half of the year, falling to 122.5 metric tonnes from 129.1 tonnes for the same period in 2011.

Recovery rates at Australia's two largest mines – the Kalgoorlie Super Pit owned by Newmont Mining (NYSE:NEM) and Barrick Gold Corp (NYSE:ABX) and the Boddington Mine owned by Newmont, both fell significantly.

Chinese gold production surged ahead by 7%, with total output hitting 182 tonnes, despite a global backdrop of overall declines in the industry.

China and Australia are the world's first and second largest gold producers respectively.

Industry pundits have recently predicted a decline in the output of major gold miners due to surging, burdensome costs.

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