Mine production satisfies 66% of world gold demand

While gold production from mines in the non-Communist world will total 53.5 million oz by 1991, there won’t be enough of the metal to satisfy demand. In fact, the Gold Institute of Washington, D.C., reports the 1991 mine output wouldn’t be enough to meet today’s demand.

“The free world increased its mine production of gold from 40.6 million oz in 1986 to 41.7 million oz in 1987, but the mines could meet only 66% of the global demand for this precious metal,” said the Institute’s managing director, John Lutley. Last year, the shortfall was met by old gold scrap (19%) and by purchases from communist countries (15%).

Top producer nation in the non- communist world continues to be South Africa, but its hold on top spot is slipping. In 1980, South Africa produced 70% of the non- communist world’s gold, while the United States, Canada and Australasia combined accounted for only 12%. Last year, South Africa’s share had fallen to 47% compared with 32% for the U.S., Canada and Australasia.

By 1991, the Institute predicts South Africa’s shares will have fallen to 39%, while the combined share of U.S., Canada and Australasia will have risen to 39%.

The top 10 producers in the world in 1987 were South Africa, Soviet Union, U.S., Canada, Australia, China, Brazil, Papua New Guinea, Philippines and Colombia.

According to the Institute, world mine production of gold in 1987 was 3.5% less than had been projected one year ago, 1% less than had been projected two years ago, and 5% greater than had been projected three years ago.

The Institute’s report, titled World Mine Production of Gold 1987-91, is based on the confidential reports of gold mining companies in the 57 countries known to produce at least 1,000 oz gold.

Incorporated in 1976 in Toronto, the Institute has 87 corporate members with operations in 16 countries.