gold, page-127511

Production has been down since 2020 but consumption has climbed

Lower production, dwindling reserves

The easiest way to increase gold supply is just mine more. That’s difficult to do though, when a mine’s reserves are getting low, and the grades have fallen to the point where only the low-grade material is left to scoop up and process.

Last year production from the world’s eight largest gold producers fell 6.5%, to 25 million ounces, owing to lower ore grades, asset sales, reduced mill throughput and lower recoveries, according to GlobalData, a UK-based data analytics and consulting company.

Newmont, Barrick and AngloGold suffered the worst production losses, with collective output dropping to 13.7Moz in 2020 form 15Moz in 2019.

In fact, the majors’ gold reserves have been in decline for the past decade. Last September Mining Weekly reported that 16 of the world’s 20 largest gold mining companies, including the three mentioned above plus Kinross Gold, saw their mine lives reduced between 2010 and 2019. Kinross, for example, had just nine years of production left, compared to 24 years in 2010.

Only two of the gold companies analyzed by S&P Global Market Intelligence, Zijin Mining and Fresnillo, had more remaining years of production at the end of the period than at the start.

https://www.mining.com/web/mined-gold-supply-still-not-keeping-up-with-demand/