Gold Production Growth to Achieve its Fastest Rate in Three Years

SEATTLE (Scrap Monster): The latest Fitch report suggests resumption of gold production growth at the fastest rate in three years, following recovery from Covid-19 related disruptions experienced over the past eighteen months. The gold mine production growth will continue to remain robust over the medium term.

The global gold production is expected to witness average yearly growth of 3.2%, recording a rise from 109.4 million ounces in 2021 to around 141.7 million ounces by 2030. It must be noted that the output had recorded only marginal growth by 0.8% per annum, over the period from 2016 to 2020.

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The Chinese output may stagnate over the next ten-year period. The domestic investment is likely to take a hit, primarily due to declining ore grades. However, Chinese firms are seen aggressively investing in overseas gold projects. It must be noted that Chinese Shandong Gold had acquired 50% ownership in Veladero mine in Argentina from Barrick Gold for a sum of $960 million.

Fitch foresees modest production growth in Australia’s gold sector. The country’s gold production is projected to increase from 10.8 million ounces in 2021 to 13.1 million ounces in 2030, thus translating to an annual average growth rate of 2.2%. Australia, along with Canada, has the largest number of gold projects in pipeline.