FUTURE LOOKS BRIGHT INDEED
INTERNATIONAL trade concerns, a weaker Australian dollar and growth in nanotechnology are translating into good times for North Queensland’s gold mining sector, according to the Queensland Resources Council.
It also bodes well for further investments in the industry in North Queensland, the council’s deputy chief executive, Judy Bertram, says.
Ms Bertram was commenting as several expansions in gold mining operations close to Townsville drive jobs and spending in the local economy.
Evolution Mining’s Mount Carlton operation south of Townsville, currently open pit, is progressing underground development and modifications at plant, while Resolute Mining is undertaking a $150 million expansion at Ravenswood, securing 380 jobs and extending the operation for a further 14 years.
Ms Bertram said gold in particular was enjoying a strong uplift with international trade concerns and a weaker Australian dollar increasing margins for Queensland producers.
“With the spot price currently sitting over $US1300 an ounce Australian producers would receive an extra 30 per cent depending on the currency fluctuations with the US dollar,” she said.
The Australian dollar is trading around 68c to one US dollar. Ms Bertram said gold explorers spent $11.7 million in the March quarter across Queensland and around $185 million in the past 12 months.
“Global demand for the precious metal in overseas markets will be underpinned by the growth in smartphones, computers and aerospace,” Ms Bertram said.
“Gold is essential to innovations in electronics, especially nanotechnology, which is driving new advancements in engineering, environmental management and medicine.
“Higher prices for longer periods will see new mines open and existing mines expand, which bodes well for further investments in North Queensland.”
Evolution Mining announced board approval for an underground development, stage 4 pit cutback and plant modifications at Mount Carlton last October.
Mount Carlton has a mine life to at least 2025 and the project will allow production from a higher grade Link zone to be brought forward.
The cost of the underground development and plant modifications has been estimated at about $60 million, while about 80 jobs are being created.
Evolution chairman Jake Klein said Mount Carlton was a very high-margin and “standout” asset for the company, generating $100 million in net mine cashflow in each of the past three years.
Earlier this year, nine leases were approved for Resolute Mining’s Ravenswood expansion, allowing the project to proceed. The expansion is extending the operation by at least 14 years.
Resolute managing director and CEO John Welborn said the mining leases supported their plans to expand production, securing about 280 jobs in operations and a further 100 in construction.