Asian demand will lead to Australia being world's 2nd largest gold producer

30/7/96

Asia's increasing demand for gold will lead to Australia becoming the world's second largest gold producer, Resources Development Minister Colin Barnett told the Diggers' and Dealers' Conference today.

Mr Barnett, who opened the Kalgoorlie conference, said that gold's future looked bright, with the Australian Bureau of Agricultural and Resource Economics (ABARE) predicting that mine production would reach 360 tonnes in 2000-2001.

"Western Australia is expected to benefit from the forecast upturn in gold production by continuing to produce 75 per cent of the nation's gold," the Minister said.

"In 1995, WA produced almost 186 tonnes of gold, and if ABARE's forecasts come true, the State will be producing around 270 tonnes pa of gold by the turn of the century."

Mr Barnett said gold had been central to the State's development and identity for the past 100 years.

"Even now, some 103 years after gold was first discovered at Kalgoorlie, it is still WA's  second-most important export after petroleum," he said.

The Minister said that although Kalgoorlie was known as 'the Goldfields', in the past quarter of a century nickel had become increasingly important to the area and had been an insulator against the cyclical gold price.

"Just as the Goldfields water pipeline became the lifeblood of Kalgoorlie in 1903 by bringing abundant supplies of water from Mundaring Weir, the Goldfields Gas Pipeline will revitalise the region by bringing cheaper energy and, hopefully, more diverse industry," he said.

"The State Government hopes lower energy prices will enable those formerly marginal enterprises to be re-assessed and perhaps become viable, especially projects involving  downstream processing and value-adding."  

Mr Barnett said the Goldfields Gas pipeline was not just for the big users.

"The extension of the gas pipeline to Kalgoorlie will not only benefit business, but also non-industrial users," he said.

"The Government is in the process of calling tenders for domestic gas reticulation in Kalgoorlie-Boulder with a start up date in 1997."

The Minister said another factor that made gas power even more significant was the issue of whether the Federal Government would abolish the diesel fuel rebate for

off-road purposes.

"Overall, the benefit to WA's mining industry of the rebate is some $409 million annually - that is why the State Government has unequivocally opposed any move to abolish that scheme," he said.

Media contact: Anabel Gomez 222 9699