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Record-high gold prices are doing little to encourage Australia's miners to dig deeper for nuggets, a quarter-by-quarter tally of production shows.
Australia produced 61.7 tonnes, or about 2 million ounces, of gold in the three months to September 30, down about 1.7 per cent on the June quarter, according to Melbourne mining consultants Surbiton Associates Pty.
Gold output was in line with the September 2006 quarter.
The Australian gold price hit an all-time closing high of A$939 ($1084) an ounce on November 26, due to higher US dollar gold prices and the strong Australian dollar.
However, higher bullion prices may have little effect on production levels, as miners took advantage of the high prices to dig less rich grades of ore, said Sandra Close, a Surbiton director.
Gold zoomed 33 per cent higher this year to a 28-year peak of above US$845 ($1102) an ounce on November 7, just shy of the US$850 all-time high touched in 1980.
Analysts say investors are abandoning a sinking dollar that, accompanied by rising crude oil, threatens to ignite inflation, reinforcing bullion's reputation as a safe-harbour investment.
Deutsche Bank has lifted its forecast average gold price by 3.6 per cent for 2007 and by 13.1 per cent next year.
Gold is currently selling for around US$797 an ounce and some gold mining executives are predicting prices of up to $1000 an ounce.
Figures out yesterday show China could usurp South Africa and claim the number one gold producer spot in 2007, with the price of the yellow metal remaining strong.
- Reuters, AAP
