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One of the nation’s biggest gold discoveries for a number of decades is set to be the main catalyst for an upsurge in Australia’s production of the precious metal.
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According to the latest government data, Australian mine production is expected to increase over the next two years, rising from 340 tonnes in 2025–26 to 359 tonnes in 2027–28 – largely driven by Northern Star’s Hemi mine coming online and Kalgoorlie Consolidated Gold Mines’ (KCGM) mill expansion.
The Hemi gold discovery is a massive, multi-million-ounce deposit in the Pilbara region of Western Australia, roughly 60km south of Port Hedland. Found in late CY19, the deposit is currently estimated to contain over 11.2 million ounces of gold, making it one of the largest gold discoveries in modern Oz history.
The latest Federal Department of Industry, Science and Resources’ “Resources and Energy Quarterly” also highlighted another two large mines, Cadia and Tanami, as being set to boost Australian gold production.
Those mines are both undergoing major works, but will have a significant impact when those upgrades are complete.
Elsewhere, the government noted that high gold prices are helping to unlock significant lower-grade deposits. The DISR said new mines such as Murchison, Challenger and Blackjack have commenced operations, adding about six tonnes a year to Australian production from December CY25.
Genesis Minerals’ Gwalia mine ramped up to full production, at around two tonnes per annum, and added ounces to the September quarter CY25.
The report found that further out in the outlook period, output will grow slowly as some new mines and expansions come online to counter falling grades and the exhaustion of reserves at existing mines.
Additional expansions will also come online gradually over the next few years. This includes Evolution Mining’s Cowal mine, which has been approved for a significant mine life extension, adding 62 tonnes over the next 12 years.
Elsewhere, Regis Resources has reported its Tropicana mine joint venture with AngloAshanti Gold is progressing the development of a third underground mine at Havana.
Regis has also just recently announced mine life extensions for its Duketon North operations to CY31, with the development of stage three at Rosemont, Garden Well Main and the Buckingham-Wellington open pit.
Globally, after reaching a record high in CY25, gold demand is expected to fall in CY26, as investors take profits and higher United States dollar bond yields and a stronger U.S. dollar reduce gold’s attractiveness. Demand will then stay reasonably steady over the outlook, according to the DISR analysis.
Gold prices are forecast to remain high in CY26 and CY27 before then falling slowly, to around US$4,000 an ounce in CY31.
Global mine supply will grow modestly by 2%, to a new all- time high of 3,906 tonnes in 2026. Mine production will peak CY28, then drop to ~4,000 tonnes per year as higher grades are exhausted and mines reach the end of their life.
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