MINING REFINING

Gold Production Struggles Despite 2024 Q1 Surge

Sat June 08 2024

The gold mining industry struggles to sustain production growth due to declining new deposits, reports the World Gold Council (WGC). Despite a 4% increase in first-quarter production in 2024, overall growth has plateaued since 2016. In 2023, mine production rose by only 0.5%, following 1.35% in 2022 and 2.7% in 2021, with a decline of 1% in 2020. WGC Chief Market Strategist John Reade notes the industry has been struggling after a decade of rapid growth from 2008. Discovering new gold deposits is increasingly difficult as many regions have been explored. Large-scale mining requires substantial investment and takes 10-20 years to develop. Additionally, securing government permits and necessary infrastructure, especially in remote areas, adds to the challenges. Gold prices have stabilized at $2,294.3 per ounce after a recent rally. Only about 10% of global discoveries contain enough gold to warrant mining, highlighting the industry’s ongoing difficulties.

Source: https://news.bitcoin.com/