Gold Mining Market Size, Share, and Industry Analysis By Mining Method (Surface Mining Underground Mining), By Grade (Low, Average, High), and Regional Forecast, 2024-2032

Gold mining is extracting gold from various methods, such as placer and hard rock mining. The gold concentration process occurs both above and below the earth's surface. At the surface, alluvial gold has been concentrated by the action of flowing water, usually rivers.

Transparent, well-managed, and accountable resource extraction can significantly contribute to economic growth due to the establishment of employment and business opportunities for local people. Furthermore, the mining of gold also brings foreign direct investment, foreign exchange, and tax revenues to countries through direct and indirect employment. Therefore, the increased use of gold in various industries drives the growth of gold mining. According to the World Gold Council, India, and China are the two largest consumers of gold across the globe and the revival of the Chinese and Indian economies post-COVID-19 pandemic is one of the primary factors for the increasing gold demand.

• As per the World Gold Council, India and China are the most prominent jewelry markets, accounting for half of the global jewelry market.

The depth and temperature in deep-level gold mining bring risks and hazards that require constant commitment and adherence to safety standards and procedures. Moreover, working conditions in some underground mines can be difficult due to high temperatures and high humidity levels, further reducing productivity. Additionally, mining costs are exceptionally high, hindering the market growth. According to the World Gold Council, the average price of gold mining in 2021 stood at USD 1,129/oz.

The outbreak of the COVID-19 pandemic and the ensuing central bank response had multiple implications for the gold mining industry. Company operations were affected by isolated outbreaks and government-mandated shutdowns. Furthermore, the demand for many commodities remained low, with lower near-term demand on the horizon. The impact of the pandemic on the mining sector remained uncertain and the crisis affected demand for commodities, supply chains, and operating models. Meanwhile, there was a fall in energy prices and currencies in some gold mining countries, leading to a rise in the margins of gold miners.

IMPORTANT INSIGHTS

The report includes the following key findings:

• Recent Advances in Gold Mining


• Key Industry Trends


• Regulatory Landscape in the Gold Mining Market


• Impact of COVID-19 on the Market

SEGMENTATION

ANALYSIS BY MINING METHOD

Based on the mining method, the market has been bifurcated into open-pit and underground mining. Open pit mining, or opencast mining, is a surface mining technique in which minerals are extracted from an open pit. Open-pit mining is the most common method of mineral extraction worldwide and does not require mining methods or tunnels. This surface mining technique is used when mineral resources or ore deposits are relatively close to the surface. Open pit mines are sometimes called "quarries" when they produce building materials and stone measurements. It is generally used to collect crushed stone, sand, rock, phosphates, aluminum, gold, and coal.

Further, underground mining is another method/process across the mining industry generally used to extract mining ores and materials deep beneath surface mining. Primarily expensive metals, such as gold, iron ore, and limestone, are extracted from underground mining. Based on these factors, the underground mining segment is likely to grow during the forecast period.

ANALYSIS BY GRADE

The World Gold Council defines 0-5 gold grams per ton as low-grade gold, 5-8 grams of gold as an average grade, and higher-grade mines have densities of 8.0 to 10.0 g/t. Low-grade gold is commonly found in open-pit minings and dominates the market. Further, average-grade gold is expected to grow fast in 2023, according to industry studies, compared to high-grade gold in 2023. Although there will be a short-term economic benefit, the average reserve grade of the remaining ore body will decrease. Mining costs then continue to affect mine life as the average grade of the ore body declines.

Based on the G/t standard, some of the world's high-grade gold mines are in the U.S., Russia, and Peru. For example, the Fire Creek mine in Battle Mountain, Nevada, reported one of the highest values ​​at 44.1 g/t. The list also includes the Macassa mine in Canada, the Kedrovka mine in Russia, and the Togurac mine in Indonesia.

The grade of gold being mined is only one of many factors that impact the profitability of a mine. Besides the composition and depth of the ore, there are also labor costs, technological investment, and management factors to consider. Furthermore, mines are subject to many national and political influences.

REGIONAL ANALYSIS

The global gold mining market has been categorized into five key regions: North America, Latin America, Asia Pacific, Europe, and the Middle East and Africa.

Asia Pacific is the dominant region in the gold mining market. China's gold demand rebounded strongly in 2023 as the central bank and retail consumers turned to the haven. According to the China Gold Association, the country's gold consumption rose 8.78% to 1,089.69 tons in 2023. Gold resources are increasingly becoming geographically diverse compared to the concentrated Middle East & Africa supply.

Moreover, the U.S. gold production significantly decreased in 2021 due to high prices and heap leaching to recover gold from low-grade disseminated deposits in Nevada and other states. According to the World Gold Council, in 2021, the U.S. produced 180 tons of gold from 12 states, worth about USD 10 billion, which was 7% less compared to its 2020 production, making it the fifth-largest gold-producing nation. In comparison, Russia is emerging as a critical producer of gold in Europe. Measured by gold reserves, Russia currently occupies the first place in the world with a share of around 13%, while in production, it occupies the third place with a share of around 9%.

KEY PLAYERS COVERED

The report includes the profiles of key players such as Barrick Gold Corporation, Newmont Mining Corporation, AngloGold Ashanti Ltd, Goldcorp Inc., Kinross Gold Corporation, Newcrest Mining Ltd, Gold Fields Ltd, Polyus Gold International Ltd, Agnico Eagle Mines Ltd, Global Gold Mining Market, Golden Star Resources, Coeur Mining, Freeport-McMoRan, Royal Gold, and NovaGold Resources.

KEY INDUSTRY DEVELOPMENTS

• In May 2023, Newmont Mining Corporation, the world's largest gold miner, bought Australian rival Newcrest Mining Ltd. for USD 19.2 billion in the industry's largest deal. Under the same, Newcrest shareholders would receive 0.4 Newmont shares for each Newcrest share and a special dividend of USD 1.10 per share, which Newcrest paid in the deal through an Australian arrangement.


• In January 2022, Golden Star Resources Ltd. was acquired by a Chinese company named Chifeng Jilong Gold Mining Co., Ltd and its subsidiary Chijin International (Hong Kong) Limited, and Chijin's assignee Kefei Investment (BVI) Limited for a cash amount of USD 470 million on a fully-diluted, in-the-money basis.