Last year, Australian mines produced 298 tonnes of gold, the highest level since 1999, up by around 3.5% over 2015.

The largest producer was once again Newmont Mining’s Boddington operation south of Perth with 800,000 ounces of gold, closely followed by Newmont and Barrick Gold’s Super Pit in Kalgoorlie with 754,000oz.

Newcrest Mining’s Cadia was third with 732,288oz, followed by Newmont’s Tanami (459,000oz) and Newcrest’s Telfer (440,519oz).

Surbiton director Dr Sandra Close said Australia’s production in 2015 was worth more than $A15 billion at a $1600 an ounce gold price.

“It was a good year for Australia’s gold miners,” she said.

“We are getting very close to the 300 tonne a year mark but we still have a way to go to break the all-time annual record of 314 tonnes set in 1997.”

Gold production fell to 220t in 2008, but had since been trending upwards.

The US Geological Survey now names Australia as the second-largest gold producer behind China, which produced 455t last year.

Former top producer South Africa fell to seventh, with Russia, the US, Canada and Peru all above it.

“Overall the Australian dollar gold price has continued to be attractive, thanks to the combination of the US dollar gold price and favourable exchange rates,” Close said.

“This has encouraged the redevelopment of previously mined areas and the refurbishment of mothballed plants, thereby pushing Australian gold output higher.”

New mines contributing to Australia’s uptick included Saracen Mineral Holdings’ Thunderbox and Blackham Resources’ Matilda.

New entrants in the coming months are expected to include Westgold Resources’ Fortnum and Eastern Goldfields’ Davyhurst.

Close warned wet weather could disrupt production in the short-term.

"Given all the recent rain in Western Australia and other states, gold output in the March quarter 2017 may well be down,” she said.

“Output early in the year is often affected by rain from summer cyclones that disrupts mining in open pits and creates problems during processing due to the sticky nature of the ore.

“Also, the March quarter is only 90 days, which reduces output by around 1.5 tonnes compared with the 92-day December quarter.” 

However, in the near-term, production is expected to increase.

“The local gold price remains reasonably attractive despite some ups and downs but I cannot predict the future - anything can happen and often does!” Close said.

The local spot gold price this morning was $1636/oz.