Australia 09 Gold Output To Rise,Move Up In Rankings-Surbiton

Australia's gold output is expected to rise in 2009 as new and redeveloped operations come into production, and the country is likely to move up in the rankings of top global gold producers, metals consultancy Surbiton said Sunday.

Output during the March quarter was steady at 54.5 metric tons, unchanged from the December quarter, but up 3% on the year.

In 2008, China was the leading gold producer with 282 tons, the U.S. second with 229 tons, then South Africa with 220 tons and Australia with 219 tons.

Commissioning of OZ Minerals Ltd.'s (OZL.AU) Prominent Hill copper-gold mine and Apex Minerals NL's (AXM.AU) Wiluna mine continues, and will contribute to output.

"The biggest boost to production will come when the redeveloped Boddington gold-copper operation is commissioned midyear," Surbiton analyst Sandra Close said.

"Boddington will produce around 31 tons of gold annually," Close said. Boddington mine is owned by Canada's Newmont Mining Corp. (NEM).

Top gold producing mines during the March quarter were Newcrest Mining Ltd.'s (NCM.AU) Telfer mine at 162,035 ounces, followed by the Super Pit joint venture of Newmont and Barrick Gold Corp. (ABX.T) at 158,000 ounces.

Spot gold prices are currently trading around $965/oz.

-By Elisabeth Behrmann, Dow Jones Newswires;

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