(Corrects headline, first and fifth paragraphs to removetimeframe for rise to record production; removes $ reference in2nd paragraph and corrects 3rd paragraph to show ramp up atexisting, not new, mines)
MELBOURNE, March 4 (Reuters) - Gold output from Australia,the world's second-largest producer, may rise to a record as astream of new projects comes on line, Australian miningconsultancy Surbiton Associates said on Sunday.
Australian gold miners, among the lowest cost globally, haveenjoyed high margins in recent years, boosting output.
Production in 2017 rose by 3 tonnes from the year before to301 tonnes, equal to about 9.7 million ounces and the highestsince 1999, due to a ramp up production at existing mines, saidSurbiton in a report.
Given the number of projects coming on stream and with fewclosures anticipated "it would not be surprising to see another20 tonnes of production added to last year's output," saidSandra Close, director at Surbiton.
"This suggests that Australia's all-time record annual goldproduction of 314 tonnes recorded in 1997 might well beexceeded," she said, without giving a timeframe.
Production in the quarter ending in December 2017 totalled 80 tonnes, up 6 tonnes from the previous quarter, Surbiton said.
Mines that have raised output in Australia include NewcrestMining's NCM.AX Cadia Valley; Tropicana, a joint venture byAngloGold ANGJ.J and Independence Group IGO.AX ; and SuperPit, a joint venture between Newmont Mining (NYSE:NEM) NEM.N and BarrickGold Corp ABX.TO .
China is the world's biggest gold producer.