Global gold mine production set to reach 132.1 million ounces

28 August 2019 (Last Updated August 28th, 2019 12:20)

Global gold mine production is expected to grow at a forecast period (2019-2023) CAGR of 2.5% to reach 132.1 million ounces (Moz) in 2023.

Global gold mine production set to reach 132.1 million ounces

Global gold mine production is expected to grow at a forecast period (2019-2023) CAGR of 2.5% to reach 132.1 million ounces (Moz) in 2023.

An increase in production, mainly from Australia, Russia, and the US is expected to support this growth, with advancing development projects alongside the expansion of existing ones. Currently there are over 90 projects undergoing expansion globally, of which 23 are located in these three countries.

Upcoming projects

The largest new mines expected to enter production over the coming four years are the Donlin Gold and the Kerr-Sulphurets-Mitchell (KSM) projects in 2023, and the Pascua-Lama project in 2021. These projects have a combined annual gold production capacity of over 3.2Moz.

The list of mines undergoing expansion includes some of the oldest operating mines, such as Turquoise Ridge and Round Mountain in the US; and the St Ives Gold Mine Complex and Olympic Dam mine in Australia.

The majority of the production growth will be supported by Russia. The country is expected to deliver a net increase of 3.4Moz, a CAGR of 4.5% over the forecast period. This will be followed by the US with a net increase of 1.6Moz (4.7% CAGR) and Australia with 1.4Moz (2.8% CAGR).

By contrast, production is declining in China, Chile and Mexico. In the former, production declined by 5.9% in 2018. This was a result of the Environmental Protection Tax being introduced, which has led to an increase in mining processing costs.

Since Newmont’s acquisition of Goldcorp, Newmont Goldcorp has become the world’s leading gold mining company. It is expected to produce between 6–7Moz of gold in 2019. In 2018 it produced 5.1Moz of gold; less than the prior year due to lower grades at several sites such as KCGM and lower leach tonnes at Phoenix, Carlin, and Yanacocha.

In second is Barrick Gold, which produced 4.5Moz in 2018, and third is AngloGold Ashanti, with production of 3.4Moz.