Australia ups gold production

Australia could overtake South Africa as the world's biggest gold producer within a few years, a mining consultancy group has predicted.

Australian gold production in 2005 rose slightly to 263 tonnes, up three tonnes on 2004, according to the latest issue of the Australian Gold Quarterly Review compiled by Melbourne-based mining consultants Surbiton Associates.

South Africa last year produced 296 tonnes, a 13 per cent drop on the previous year and the lowest output in more than 80 years.

Reasons for the dramatic decline included higher production costs and the weak local currency in late 2004 and early 2005, which resulted in the closure of two mines and a number of shafts, the Chamber of Mines of South Africa said in a statement last week.

- RADIO AUSTRALIA