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This is a time of change for the entire gold industry. The mining sector is facing a barrage of converging
challenges; increasing costs, ever higher expectations from a wide range of stakeholders and a gold price
which could call in to question the viability of some projects and lead to a contraction in supply.
however is increasing, fuelled by; expanding middle classes in Asia, diversification of reserve assets by central
banks and a growing desire for physical gold amongst manyWestern savers.
In the midst of all this, and at a time when the ‘extractive’ industries are being widely scrutinised for their global
impact, it is important to be reminded of how gold contributes so broadly to the global economy, ranging from
foreign exchange earnings for gold-exporting countries to employment opportunities and tax revenues
study demonstrates this clearly; of particular note is the fact that the economic value generated has a direct and
sustained impact on the local economies where gold production or consumption takes place.
To read the entire article:
The economic impact
Oct 18 ( From World Gold Council , PWC )
Global mine production was 2,861 tonnes in 2012. Mines in the top 15 gold producing countries extracted 2,177
tonnes of gold in 2012, 76% of the world total. The six largest producers, China, Australia, the United States,
Russia, Peru and South Africa, extracted more than half of the gold mined globally.
The gold mines in the world’s top 15 producing countries are estimated to have generated US$78.4 billion of
direct GVA in 2012. This is equal to the entire national economic output of Ecuador or Azerbaijan or 30% of the
estimated GDP of Shanghai. The direct GVA for each country is shown in the chart below.
This impact excludes the
indirect or induced effects of gold mining which arise from spending in the supply chain and by employees on
goods and services. If this impact was included, the economic contribution of gold mining would be
The economic impact of gold $MACRO, $STUDY, $GLD, $GC_F , $GDXJ
China is estimated to derive the largest economic contribution directly from gold mining at US$12.6 billion in
2012, although this is only a small proportion of the total output of the world’s second largest economy (0.2%).
The direct GVA from gold mining is also estimated to be over US$8.0 billion in the US, Australia, Russia and
The significance of gold mining to national economies varies considerably. It is estimated to be greatest in
Papua New Guinea (15% of GDP), followed by Ghana (8% of GDP) and Tanzania (6% of GDP).
countries, gold mining is one of the most significant sources of wealth creation in the economy.
The average amount of economic value added per ounce of gold is US$1,139 and ranges from US$946 in China
to US$1,352 in Peru in 2012. The differences between countries reflect variations in labour costs and
Gold gross value added (GVA) in 2012