Fitch Predicts Robust Gold Output Over the Next Decade

SEATTLE (Scrap Monster): The latest industry report published by Fitch Solutions foresees robust growth in global gold output in the coming years, mainly driven by Russia and Australia. The report cites higher gold prices and merger of key gold mining majors as other catalysts for projected gold output growth.

According to Fitch report, the global gold production is expected to record average annual growth of 2.5%. It sees global gold production at 134 million ounces by 2029, as compared with 106 million ounces in 2020. It must be noted that the gold output growth had averages only at around 1.2% during 2016-’19.

Fitch forecasts stagnant gold production in China during 2020-’29. The annual growth rate is predicted at 0.2%.

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The Australian gold sector is likely to witness modest production growth, rising from 11.7moz in 2020 to 14.2moz by 2029. The major contributor will be the Carrapateena copper-gold project by OZ Minerals, with anticipated average annual production of 67koz of gold during its 20 years estimated life.

The Russian gold output is likely to grow from 11.3moz in 2020 to 15.5moz in 2029 growing at a rate of 3.7% per annum. By 2029, Russia will overtake China as the largest gold miner. The Russian share of world gold output will grow from 10.6% in 2020 to 11.6% in 2029.