Australia 2nd-largest gold producer, but reserves running out

By Christopher Galbraith | April 30, 2018

With its position as a large producer, Australia is also a top destination for exploration spending, but can the current level and focus of exploration sustain Australia's aging gold sector?

Australia is the second-largest gold-producing country behind China, a position it has held since 2009. In 2018, Australia produced just over 10.0 million ounces, the highest amount since 1993. We identified 2018 production from 73 mines and/or mining complexes, of which 46 are located in Western Australia and accounted for more than 70% of the country's gold production for the year.

Global gold production has been climbing every year since 2009. Australia's trajectory has had some year-over-year bumps but has also been increasing over the same period. In 2019, Australia's gold production is projected to increase again year over year, by 7% — more than the world average projected increase of 2%. However, while global gold production is projected to shrink by 5% from 2019 to 2024, Australia's production will fall by 35% to 40% during the same period.