Australia set to overtake China as one of the world's largest gold producers

Posted: 6th Mar

Australia is set to overtake China as one of the world’s largest gold producers, guided by OZ Minerals’ $916 million Carrapateena project in South Australia.

Fitch Solutions predicted a lift in Australia’s gold output from 10.9 million ounces this year to 13.3 million ounces by 2029, averaging 2.3 per cent annual growth.

Carrapateena is one of the largest mines being developed in Australia that is set to ramp up to steady state production.

The mine will be a 4.25 million tonnes per annum copper-gold underground operation with an estimated life of 20 years.

Fitch Solutions has also ranked Australia second after Canada in respect to the number of new projects and mine expansions.

China’s gold production, meanwhile, was forecast to remain roughly stagnant during the next decade.

The country could experience a projected average growth rate of 0.1 per cent a year, marking a notable slowdown compared with the average annual growth of 2.7 per cent over the previous decade.

“Chinese gold output has been challenged by strict environmental regulations and closures of smaller mines, and failing ore grades in general,” Fitch Solutions stated.

“Nonetheless, the country will remain the largest global producer of gold ore by a significant margin.”

The analyst firm expected Russia to overtake China as the largest gold miner, with an accelerating output growth underpinned by a buoyed domestic demand.

The country’s output was forecast to climb from 11.3 million ounces this year to 15.5 million ounces in 2029, representing an average annual growth of 3.7 per cent.

“In the longer term, we expect (Russian) gold production to be supported by a healthy project pipeline,” Fitch Solutions stated.

“This would see Russia overtake China as the largest gold miner, accounting for 11.7 per cent of global output by 2029, compared to 10.4 per cent in 2020.”

Source: Australian Mining - https://www.australianmining.com.au/news/australia-to-top-china-as-global-key-gold-producer/