Goldminers are being shut down as banks pull their funding amid the ongoing crisis.
Read moreNews Corp understands the issue is related to the $7 billion deposit-to-exchange facility at the gold mine in Queensland.
Goldminers were being taken off the hook by the bank’s “gold fix” in the hope that it would boost their bottom line.
The Gold Fix is the central bank’s attempt to keep gold prices higher.
Gold is the world’s reserve currency.
It’s worth around $1,200 an ounce, but in Australia is worth only around $0.07 an ounce.
The Federal Reserve, which is the sole government agency that can make money out of gold, has set a target of $5.25 an ounce by the end of 2018.
Gold has been in a slump since January, when gold prices were worth $2,750 an ounce before falling by more than $1 an ounce to $1.75.
Gold mining companies have been in decline for some time.
Gold miners have been struggling to make money since a major closure of the Gold Coast’s Glencore gold mine.
A $9.5 billion closure of mines at the same mine in the mid-2000s saw the closure of nearly a third of the world gold supply.
Gold price has been on a rollercoaster ride since then, bouncing back in the early part of this year and back again, with prices hitting an all-time high in July.
Gold prices have since fallen back into negative territory, and are now hovering around $2 an ounce in the third quarter.
