JOHANNESBURG (miningweekly.com) - The average cost of mining an ounce of gold rose by 9% in the fourth quarter of 2009 to $516/oz, compared with the previous quarter, a report by Fortis Bank, VM Group and Haliburton Mineral Services stated on Wednesday.

However, the fourth quarter also saw record gold prices, reaching an average of $1 100/oz, which is $583/oz higher than the average cost of mining, up from a difference of $453/oz in the third quarter.

The report noted that costs had also risen over the longer-term. Full-year data for 2009 showed that the average cash cost was $485/oz, up from $470/oz in 2008 and just $280/oz in 2005.

From the initial report, written in 2005, mining costs had risen by 73%, however, the average gold price had more than doubled.

South Africa was the highest cash cost region for the quarter, with an average cost of $706/oz, which was 6% higher than the previous quarter and 57% higher than the comparable period in 2008, mainly reflecting a 33% appreciation of the rand during 2009.

The lowest cost region was Latin America, with cash costs of $381/oz in the fourth quarter of 2009, keeping its cost increases to 4%.

The average increase in cash costs for the 12-month period from the fourth quarter of 2008 to the fourth quarter of 2009 was 14%.

The report included cost reporting from more than 80 gold mining companies with 232 mines, with a total production of 11,6-million ounces