Australia imported K5.8 billion worth of gold: Report
AUSTRALIA has imported K5.8 billion worth of gold from Papua New Guinea in the first eight months of 2024, according to Westpac 2024 Economic Update and Outlook report. This is a 43.5 per cent increase compared to the same period last year.
This surge in imports exceeds total annual gold exports to Australia during 2021 and 2022. The bank indicates in the report that gold production has been revitalised with the reopening of the Porgera mine after nearly four years of closure.
This restart provided a significant boost to resource-led growth and job creation in Papua New Guinea. Since resuming operations following the completion of the Commencement Agreement in December 2023, Porgera has produced 63,000 ounces of gold in the first two quarters of 2024. This includes 14,000 ounces in the first quarter and an impressive 49,000 ounces in the second quarter, according to Barrick Gold Corporation’s Q2 2024 report.
Barrick Gold, which holds a 24.5 per cent equity stake in the mine, initially projected the mine to produce between 50,000 and 70,000 ounces of gold for the entire year of 2024. Remarkably, the mine has already achieved 90 per cent of its target output in the first half of the year and is expected to exceed the initial forecast.
In other mines, Newmont produced 322,000 oz of gold at its Lihir site, where second quarter production was slightly impacted by heavy rainfall. On the other hand, Niuminco Group Limited continues its drilling program at its Edie Creek mine, with limited sampling and processing works. Westpac Economics forecasts gold to maintain its safehaven status amid the ongoing Middle East conflict, revising prices upwards to US$2,750 per ounce into 2025.
The World Gold Council reports that global gold demand dropped in first three quarters of 2024 by 2.7 percent, driven by significant decline in jewellery fabrication by 7.4 per cent, which constitutes the largest share of global gold demand including unflattering demand by central banks. However, gold demand for technology due to AI surge and investment increased.
The high price of gold has notably reduced consumer demand for gold jewellery year to date, with India experiencing an 0.7 per cent drop and China a 22.3 per cent decline in the first three quarters of the year.
In India, reduction in import duties despite record-high prices provided some relief to the jewellery demand which picked up by 10.2 per cent in the third quarter alone as the country experienced festive seasons.