Large gold-producing countries and their mining companies stand to benefit most from this current bull market in gold.
The price of gold has been on a tear for all of 2024, breaking and surpassing previous records. Prices immediately jumped above US$2,600, following an announcement on September 18 of a 50 basis point decrease in the benchmark rate of the US Federal Reserve. This largely anticipated cut is in response to the most recent balance in the labor market and new data which indicate that inflation is still moving closer to the Fed’s goal rate of 2 percent.
What’s more, with more investors seeking refuge in assets such as gold, rising tensions in the Middle East, which could further destabilize the oil-producing region, might be having a spillover effect.
Which countries are producing the most gold, then? Here, the Investing News Network uses the latest output numbers from the US Geological Survey to illustrate which countries mined the most yellow metal in 2023. According to the group, the total amount of gold produced globally last year weighed 3,000 MT, down 60 MT from 2022.
Gold production quantity: 370 metric tones
China has been holding the position of the world’s largest producer of gold. In 2023, a sizeable 370 metric tons of gold were produced by the country; if to compare, in ten years running, this was a case. Such state-owned companies as China Gold International Resources, Shandong Gold, and Zijin Mining Group are driving this dominance. Moreover, through the exploration and development of gold resources in most Asian and African countries, China’s Belt and Road Initiative has helped the country secure its influence in the gold mining business globally.
Besides being one of the biggest producers, China is the largest consumer of gold globally. The nation’s central bank, in 2023, became the most aggressive buyer of gold with the purchase of 225 metric tons. That large purchase, coupled with strong local demand, underpins strategic interests for the metal as an asset and economic hedge.
Gold production quantity: 310 metric tones
Australia produced 310 metric tons of gold in 2023, which is roughly the same amount of gold produced in 2023 at 314 MT.
There are numerous large-scale gold mines throughout the country; the five largest mines are located in various states. Newmont’s (TSX:NGT, NYSE:NEM) Boddington mine in Western Australia was the largest with 589,000 ounces produced through the first three quarters of 2023.
Hosting 12,000 MT of gold reserves, Australia boasts the richest gold deposits in the world and forms a large part of the world’s total gold supply. In 2022-2023, it made economic contributions of AU$24 billion to the economy of Australia.
Gold production quantity: 310 metric tones
In 2023, Russia produced 310 metric tons of gold, unchanged from the prior year. Since producing just 255 MT of gold in 2017, output in the country has increased fairly dramatically.
That means, based on the data from the US Geological Survey, Russian gold reserves stand at 11,100 MT, ranking second in the world after Australia. However, with all its huge production and reserves, Russian gold has struggled to find international markets since the country’s invasion of Ukraine in February this year.
Gold production quantity: 200 metric tones
In 2023, Canada’s gold production was 200 metric tons, down from a modest 6 MT reduction from 2022.
Combined, Ontario and Quebec are responsible for nearly 70% of Canada’s total gold output and are, therefore, the two top-producing gold provinces in the country. Gold, according to the Canadian government, is the most valuable commodity mined in the country – domestic exports of the precious metal were valued at C$22.34 billion in 2022.
Golden Triangle in British Columbia – another highly explored region, hosts two gold mines: Brucejack and Red Chris that Newmont has; the latter is also a 70/30 joint venture with Imperial Metals. Significant finds by major junior companies such as Goliath Resources have also emerged in the area, adding to optimism for the region’s potential.
Gold production quantity: 170 metric tones
In 2023, the US produced 170 metric tons of gold, down from the 173 MT produced in 2022. In fact, US gold production has been trending downward since 2017, when the country produced 237 MT of the yellow metal. Once again, Nevada was far and away the top gold-producing state with 73 percent of the total US output, followed by Alaska at 13 percent.
Even with the reduced production, the US has significant gold resources, standing at 33,000 MT in identified and undiscovered reserves. Of importance, a substantial proportion of undiscovered gold is associated with the copper porphyry deposits. The country retains around 3,000 MT of gold reserves.
Gold production quantity: 130 metric tones
Kazastan mined just 69 metric tons of gold in 2016, but its outlook of 130 MT for 2023 shows that the country’s production of the yellow metal is still on the climb. The Altyntau Kokshetau mine, owned by mining giant Glencore (LSE:GLEN,OTC Pink:GLCNF), is Kazakstan’s largest gold mining operation.
The Anglo-Russian company Polymetal International AIX:POLY, one of the largest producers of Kazakhstan, due to tensions brought about by Russia’s invasion of Ukraine, it delisted from the London Stock Exchange in August 2023 as part of a plan to divest from its subsidiaries in Russia and Kazakhstani. It is still listed in the Astana International Exchange in Kazakhstan, where it has considerable operations.
Gold production quantity: 120 metric tones
Gold mining has been a rather longstanding affair with Mexico; indeed, gold and silver were the primary targets of Spanish colonization of Central America during the early and mid-1500s. With 120 metric tons extracted in 2023, Mexico is now one of the top producers of gold in the world. Half of the country’s metal output consists of precious metals.
Although foreign companies own a fair share of the gold mining in Mexico, one of the largest operations is the Herradura mine, which belongs to Fresnillo-, based in Mexico City. In its fiscal year 2023, the mine produced 355,485 ounces of gold, or roughly 10.08 MT. This represents more than half of the city’s total gold production, or about 25 percent of Fresnillo’s total adjusted revenue.
8.Indonesia
Gold production quantity: 110 metric tones
The mining industry is one of the most important in Indonesia, and the country is among the world’s top producers of nickel, copper, and gold. In 2023, Indonesia produced an estimated 110 metric tons of gold, up 5 MT over the prior year.
Indonesia has a number of major gold mines. The largest is the Grasberg Mining District, a joint venture between Freeport-McMoRan and Indonesia’s state-owned Indonesia Asahan Aluminium. The area produced 1.98 million ounces of gold-or 56.1 MT-in 2023; it has an estimated 23.9 million ounces contained in mineral reserves.
Gold production quantity: 100 metric tones
The Muruntau gold mine in Uzbekistan is one of the largest gold mines in the world and is operated by Navoi Mining and Metallurgical Company. There was initial identification of considerable gold deposits at the site back in the 1950s, and with 4,500 MT, they still possess some of the biggest gold reserves in the world. With the finding, the gold mining industry of Uzbekistan was off to a start. The mine produces over 2.5 million ounces of gold annually and is expected to continue into the 2030s.
The yellow metal mining hit an all-time low in the mid-1990s upon the fall of the Soviet Union in 1991. The country’s administration announced in 2019 that it was going to invest more in exploration and development. While its annual output has not yet indicated that, upgrades
Gold production quantity: 100 metric tones
operations globally. The location still contains some of the world’s greatest gold reserves, with 4,500 MT, having been the site of massive deposits in the 1950s. In Uzbekistan, gold mining began with the discovery. It is anticipated that the mine will continue to operate into the 2030s and generate over 2.5 million ounces of gold annually.
After the Soviet Union collapsed in 1991, yellow metal mining reached its lowest point ever in the mid-1990s. The nation’s government declared increased funding for exploration and development in 2019. Although its yearly output hasn’t yet reflected that, improvements