Weak currency encourages Australia's gold miners to dig deeper

SYDNEY, Nov 29 (Reuters) - Gold miners in Australia,
emboldened by a weakening currency, have been increasing
production in the face of a global rout in the precious metal,
figures released on Sunday showed.
Output by the world's no. 2 producer behind China climbed to
72 tonnes in the third quarter, up 1 percent up on the
previous quarter and 2 percent higher than the same period a
year ago, according to a survey by sector consultants Surbiton
Associates.
"The declining value of the Australian dollar has once again
been the great saviour of our gold sector and of the local
resources industry in general," Surbiton director Sandra Close
said.
The value of Australian dollar AUD= over the third
quarter declined from around 77 U.S. cents to around 70 U.S.
cents.
The weaker currency translated into a A$20 lift in the
average gold price over the quarter for Australian producers
versus the previous period to A$1,550 per ounce, Close said.
At the current exchange rate of about 72 U.S. cents, the
local gold price sits at A$1,468.99 per ounce XAUAUD=R .
U.S.-dollar spot gold XAU= fell nearly 2 percent to a near
six-year low of $1,052.46 an ounce on Friday, which analysts
attributed to a strong U.S. dollar and prospects of a U.S.
interest rate rise in December. GOL/ .
Some of Australia's biggest mines increased output over the
quarter, according to Close.
These included the Super Pit mine in Western Australia, a
joint venture between Newmont Mining Corp (N:NEM) NEM.N and Barrick
Gold Corp ABX.TO , which lifted production by 32,000 ounces in
the third quarter versus the second quarter.
The Newmont-owned Tanami mine recorded a 10,000-ounce rise
in output, while the Gwalia lode owned by St Barbara Ltd
SBM.AX upped its yield by 15,000 ounces.
Australia last year produced 285 tonnes of gold, a distant
second to the roughly 450 tonnes dug out of mines in China in
2014, according to industry data.
A decade ago, South Africa was the top gold producer
followed by the United States, Australia and then China.