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What’s mined is yours: Two-thirds of gold revenue stays where it’s found

December 8, 2021

What’s mined is yours: Two-thirds of gold revenue stays where it’s found

Gold mining plays an enormous role supporting some of the most impoverished communities around the world, a new World Gold Council report has found.

Gold mining plays an enormous role supporting some of the most impoverished communities around the world, a new World Gold Council report has found.

In its latest report, The Social and Economic Contribution of Gold Mining, the World Gold Council (WGC) found gold mining generates US$60.1 billion in revenues globally, of which 63% (US$37.9 billion) stays in the producing country.

“This equates to almost US$1100 in value added locally for every ounce produced,” the WGC said.

The report also found that 195,000 people globally are directly employed by the sector, receiving a cumulative US$8.7 billion in wages.

Indirect employment generated by gold mining is also significant. For each person employed by the industry, a further six jobs are created for contractors or within the local supply chain, bringing total employment closer to 1.4 million people.

Salary re-spending by these workers in turn creates a further 692,000 jobs.

Investing in the community

The WGC report found gold mining’s contribution to local communities extends beyond employment and wages, with WGC member companies spending more than US$438 million to support community groups.

This includes almost US$80 million in funding to local Indigenous organisations.

“Whilst the lifespan of a mine is finite, many of the benefits accrued during the lifecycle of the mine remain afterwards,” the WGC said.

“Host nations and communities might therefore come to regard responsible and sustainable gold mining operations as representing of a “window of opportunity” for development. 

“Their wider contributions can include infrastructure such as power and water supply, a skilled local workforce and a more active business community.”

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Sources


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