Gold production is giving a major boost to the economic development of several Latin American countries, according to a report published by the World Gold Council.
Latin American nations produced about 378 tons of gold in 1999, or 15% of the world’s total, which represents an 80% increase since 1990.
The report, titled The New El Dorado: The Importance of Gold Mining to Latin America, points to Peru as the region’s biggest success story. The nation is now the world’s eighth-largest producer, with gold output representing about 20% of total exports.
The study notes that foreign investment has been the driving force behind gold exploration, which was minimal before the 1990s. Although there is great potential for a sustained rise in gold output across the region, the study says more exploration must take place before this potential can be fully realized. Already, Mexico has recorded a decrease in exploration spending, owing to low gold prices.
Despite some weakness in exploration spending, Latin America continues to attract the attention of senior gold producers. One powerful attraction is low production costs; others are increasingly stable economies (relative to elsewhere in the world) and geologically prospective terrains that are not yet fully explored.
The study suggests that Argentina, Brazil, Colombia, Ecuador, French Guinana, Guyana, Mexico, Nicaragua and Venezuela are among the countries most likely to benefit from increased gold exploration.
Be the first to comment on "Study shows gold’s importance"