One of the rarest elements in the world includes gold. It makes 0.001 to 0.006 parts per million of the earth’s crust. Do you know how much dig up gold each year in the world and who are the largest gold producing countries in the world?
The World Gold Council (WGC) releases the data every year. According to current data realized by WGC, the total gold production in 2020 was 3,478.1 tonnes (122.7 million ounces). It is the second consecutive year when gold production has decreased. It is evident that the pandemic slowed down the production of gold this year, but on the other hand, investment in this sector is also decreasing.
A consecutive decrease in production raised the question whether the peak gold finally arrived? The low-hanging fruit has already been mined, but the giant deposits containing many millions of ounces of gold are not discovered at the same rate as they were.
A few years back, South Africa was one of the top leaders in gold production. It dug up over 1,000 tonnes in 1970, but its production volume rapidly declined after that. Last year, it was not in the top 10 gold-producing countries.
Although South Africa is not in the top 10 countries, we have seen minor changes in 2019. Peru also disappeared and gave some space for Uzbekistan; moreover, Brazil had improved its spot in the chart. Now Ghana is the only country that appears in the top 10 list.
Below is the list of the largest gold producers in 2020, starting from China and top consumers. All data is from WGC as of June 2020.
Largest Gold Producing Countries:
1. China – 368.3 tonnes
For many years, China place 1st in the largest gold producing countries. It contributes 11% of global mining production. The production has been fell from 383 tonnes to 368 tonnes. It is the fourth consecutive year of declining production. This downward trend is due to the government’s strict implementation of environmental policies. For example, robust control over the use of cyanide at gold mines forced several operations to cut back production.
2. Russia – 331.1 tonnes
Russia place 2nd in the largest gold producing countries. Most of Europe’s gold comes from Russia. This increasing demand from Europe bost the Russia production from 2010. Russia became the second-largest producer of gold in 2019 by betting Australia in competition. Russian government purchased two-third of the gold locally produced.
3. Australia – 327.8 tonnes
It is consecutive 8th year when its production has been increased. The Australian mining industry contributes half of the total exports and generates 8% of its GDP. Revamping several projects like Mount Morgans, Candia valley, and high production of other mines contributed to increasing production.
4. United States – 190.2 tonnes
It is the first time US production fell from 200 tonnes in several years. The decline in production starts from 2019. 80% of US gold production comes from Nevada. If Nevada is the country, it will be at the top of the list in gold production.
5. Canada – 170.6 tonnes
From 2017, Canada is at the 5th spot in the list. Canada’s largest gold mine is Canadian Malartic. Yamana Gold and Agnico Engle jointly owned it. They were together produced over 16 tonnes last year.
6. Ghana – 138.7 tonnes
Now Ghana is the largest gold producer on the African continent. It has diversified mineral resources. Prominent industry player like Anglogold Ashanti and Gold Field have shifted their focus from South Africa to Ghana. In Ghana, the production cost is much cheaper than in South Africa.
7. Brazil – 107.0 tonnes
Brazil secured this slot in 2019 from moving up to 10th. Its production increased 3rd year consecutively. The increase in output is due to a rise in illegal mining in the last six years in the heart of the Amazon forest. President Jair Bolsonaro has developed the country by taping its mineral resources.
8. Uzbekistan – 101.6 tonnes
Uzbekistan has significantly increased its production from 94.6 tonnes to 101.6 tonnes. In 2020, it was the first time its production increased from 100 tonnes. Muruntau is the world’s largest open-pit gold mine by area. Many geologists believe that Uzbekistan has the largest gold reserve in the world.
9. Mexico – 101.6 tonnes
Mexico’s production has continuously fallen over the last five years, but however its remains competitive in gold production. Its output rose from 50.8 tonnes in 2008 to 131 tonnes in 2015. Mexico is one of the most attractive mining places due to its relatively low cost of regulation.
10. Indonesia – 100.9 tonnes
The world’s second-largest gold mine in Indonesia. PT Freepot Indonesia operates with more than 20,000 workers. Indonesia contributes around 3% of the global supply.
Source Data: World Gold Council