A record A$7.6 billion will be spent exploring for gold in Australia in 2002-03, up from A$6.7 billion in 2000-01, according to a survey by the Australian Gold Council.
Gold producers will account for roughly two-thirds of the total by spending A$5.08 billion on capital and operational expenditures; contractors will contribute a further A$2.5 billion; and exploration companies will make up the rest, spending A$89.6 million.
More than A$7 billion of the total will be spent in rural areas, directly employing about 23,000 people.
The record investment is occurring at a time of strong consolidation within the Australian gold sector — most notably, Denver-based Newmont Mining’s takeover of Normandy Mining, and Toronto-based Placer Dome’s hostile bid for AurionGold.
The survey also tracked the level of environmental expenditures by producers, contractors and explorers. In 2002-3, the Australian gold sector will spend $65.2 million on environmental projects, such as land rehabilitation, revegetation and methods to control pollution. The sector will also spend more than A$6 million on community-based projects.
Meanwhile, the Australian Bureau of Agricultural and Resource Economics predicts that gold exports will rise to A$6.4 billion in 2003, up from A$4.8 billion in 2001.
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