Companies add clout, funds to WGC

Agnico-Eagle Mines (AEM-T, AEM-N), Cambior (CBJ-T, CBJ-X), Coeur D’Alene Mines (CDM-T, CDE-N), Eldorado Gold (ELD-T, EGO-X), Goldcorp (G-T, GG-N), Iamgold (IMG-T, IAG-N), and Kinross Gold (K-T, KGC-N) have joined the London-based World Gold Council (WGC), the marketing organization funded by the world’s gold mining companies.

The WGC now represents 24 companies that produce about 38% of the world’s gold each year, up from 17% before the new additions. The council hopes that enough companies join its ranks and push it over the 50% mark in terms of yearly global gold output. The new members account for roughly 5% of world gold production annually.

With more members, the WGC will have more cash to fund its gold marketing campaigns, and the additions seem to reverse a trend of declining membership.

“By joining the WGC, these gold producers recognize the significant value created for the entire industry in the last three years, through both its marketing efforts and investment product creation,” says Pierre Lassonde, chairman of the World Gold Council and president of Newmont Mining (NMC-T, NEM-N). We look forward to welcoming even more new members in the months ahead.”

Some highlights for gold over the previous three years include: the creation of the first exchange-traded gold fund, which had almost 500 tonnes of gold taken up by investors in about 18 months; the price of gold has more than doubled; and in 2005, gold jewelry demand rose 17% by value in markets where the WGC conducted promotional campaigns, compared with only 7% in regions where there was no WGC promotion.

The World Gold Council was founded in 1987 to stimulate demand for gold by consumers, investors, industry, and the sector itself. The WGC also lobbies to limit trading barriers to encourage the widespread ownership of gold products, and promotes the role of gold as a reserve asset in the official sector.