U.S. GOLD OUTPUT DECLINES ON BACK OF NEWMMONT, BARRICK / MINEWEB

U.S. gold output declines on back of Newmont, Barrick

Canada was the leading exporter of gold to the United States for the first half of this year, according to the U.S. Geological Survey.

Author: Dorothy Kosich

Posted: Tuesday , 30 Sep 2014 

RENO (Mineweb) -  Production of gold by U.S. mines was 17,700 kilograms (569,068 troy ounces) in June, down 10% from 19,600 kg (630,154 oz) in June 2013, the U.S. Geological Survey recently reported. Domestic gold production for the first six months of this year was down 8% than that of the first half of last year due to lower production from Barrick Gold’s Cortez Mine and Newmont Mining’s Nevada operations.

For the first half of this year, U.S. mines produced 103,000 kg (3,311,526 oz) of gold. Nevada led production with 74,100 kg (2,382,370 oz), followed by Alaska with 15,100 kg (485,476 oz), and other states combined at 14,000 kg.

The Cortez Mine in Northern Nevada produced only 13,800 kg (443,680 oz) of gold during the first half of this year, down 42% from the first six months of last year “owing to a drastic decline in grade in ore from the Cortez Hill open pit,” said the USGS.

During the same period, Newmont’s Phoenix operations, also located in Northern Nevada, “produced less gold owing to lower mill throughput and lower ore grade,” said the survey.

“The Twin Creeks Autoclave processed less tonnage, partially owing to the sale of the Midas Mine in the first quarter of 2014.”

The USGS also reported that U.S. imports for the consumption of gold for the first six months of 2014 were 5% lower than during the same period in 2013. While imports of ores and concentrates during the first half of the year were up 48%, imports of refined bullion increased 15%. However, imports of doré (a rough gold and silver alloy) and precipitates decreased by 14%.

Canada was the leading shipper of gold to the United States, supplying 27% of total U.S. gold imports in the first half of this year, followed by Mexico at 22%; Columbia at 13% and Bolivia, which supplied 10%, said the geological survey. Canada accounted for 73% of refined bullion and 97% of ores and concentrates for the first six months of 2014.

Total U.S. gold exports plunged 41% in the first half of this year, compared with those for the first half of last year, said the agency. “Exports of ores and concentrates decreased by 29%, exports of doré and precipitates decreased by 45%, and exports of refined bullion decreased by 40%.”

Hong Kong and Switzerland were the leading destinations for U.S. gold materials accounting for 42% and 34%, respectively, of the gold exports for the first half of this year and 58% and 20%, respectively, of bullion exports during the same period.

The leading recipients of U.S. exports of gold doré and precipitates for the first six months of this year were: Switzerland (74%), United Arab Emirates (15%), and India (10%), said the USGS.