IMPROVING OPERATING COSTS -SHORT TERM AND LONG TERM Focus

Over the last eighteen months, there has been a dramatic r decrease in the gold price fom US$450/oz to a low of US$275/oz. The prospect of low gold prices, around US$300/oz, appears to be a reality the gold mining industry will have to face over the next couple of years. Already some high cost operations have closed and at others, cost cutting measures and rationalisation have been or are being undertaken. This paper reviews the operating cost of some Australian mines and highlights the potential for cost cutting and demon­strates individual impacts on the dollar's reduction in the cost per ounce of gold.