The World Gold Council (WGC) said that the gold mining industry is struggling to maintain production growth, while precious metal deposits are becoming increasingly difficult to find.
“In the first quarter of 2024, we recorded a record increase in mine production by 4% per annum. But in general, mining production, in fact, stabilized around 2016-2018, and since then we have not seen growth,” said John Reed, chief market strategist at WGC, adding that last year mining rose by only 0.5% per annum after an increase of 1.35% per annum in 2022.
"I think the most stunning story is this: after 10 years of rapid growth starting around 2008, the mining industry is struggling to report sustained growth in production. New gold deposits are becoming increasingly difficult to find, as many promising deposits have already been explored," John Reed added.
Large-scale gold mining is capital intensive and requires significant exploration and field development, which, according to the WGC, takes an average of 10 to 20 years before the mine is ready for operation. In addition to the discovery process, mining activities are complicated by the long-term obtaining of government permits. In addition, many mining projects are planned in remote areas that require infrastructure, which leads to additional costs.
To date, about 187,000 tons of gold have been mined, most of which are in China, South Africa and Australia. According to the US Geological Survey, the reserves of gold that can be mined are estimated at about 57,000 tons.