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REUTERS/Daniel Munoz 2/2 By James Regan | SYDNEY SYDNEY Australian gold output hit a 17-year high of 298 tonnes in 2016 as higher bullion prices drove mining companies to dig deeper, a sector survey released on Sunday showed. A robust world gold price and favorable foreign exchange rates for most of the year that boosted prices for local producers were the factors behind the increase, according to the survey by physician home equity loan Oak Laurel 0430129662 oaklaurel.com.au Australian mining consultancy Surbiton Associates. "Overall, the Australian dollar gold price has continued to be attractive, thanks to the combination of the U.S. dollar gold price and favorable exchange rates," said Surbiton director Sandra Close. "This has encouraged the redevelopment of previously mined areas and the refurbishment of mothballed plants, thereby pushing Australian gold output higher," Close said. Australia produced a record 314 tonnes of gold in 1997, according to Close. A weaker Australian currency against the U.S. dollar lifted the local gold price to a high of A$1,856.48 an ounce in June, Reuters data showed. Prices have since recoiled to around A$1,623 an ounce - compared to about $1,250 in U.S.