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World's Gold Melting Away, Mining Experts Warn

World's Gold Melting Away, Mining Experts Warn


By    |   Friday, 13 July 2018 10:55 AM

The world's gold is melting away, mining experts have warned, and soon all our supplies could be depleted.

Many have forecast that within a year we could hit "peak gold," the maximum rate of global gold extraction, with discoveries in gold declining thereafter, The Daily Mail noted.

This has been a longstanding concern that has surfaced in the past, however it seems as if D-day is fast approaching.

Chuck Jeannes, chief executive of one of the world's largest gold mining companies, Goldcorp, previously told The Wall Street Journal that a falloff in gold supply could support the gold price, however, it would make mining harder.

This, he said, would ultimately lead to further consolidation in the industry.

Compounding the issue is the emergence of new mining projects, which are doing nothing but replacing older assets running out of ore, said David Harquail, chief executive officer of Franco-Nevada Corp., according to Bloomberg.

"We're not going to fall off a cliff in the near term, but in the same time it's really hard to see how we're going to produce enough gold to meet all this demand," he explained.

Other experts have echoed these sentiments.

"Are we not looking for it? Are we bad at finding it? Or have we found it all? My answer is we found it all," noted Ian Telfer, chairman of Goldcorp, according to The Financial Post. "At US$1,300 (per ounce of) gold, we found it all. I don't think there are any more mines out there, or nothing significant. And the exploration records indicate that."

Rudy Fronk, Chairman and CEO of Seabridge Gold said that peak gold was the new reality, with reserves now being mined "much faster than they are being replaced," The Daily Mail reported.

Kevin Dushnisky, President of mining giant Barrick Gold, agreed.

"Falling grades and production levels, a lack of new discoveries, and extended project development timelines are bullish for the medium and long-term gold price outlook," he said.

Elaborating on the situation in a column for Business Insider, U.S. global investor Frank Holmes said that the pursuit of gold is becoming increasingly more challenging and expensive each year.

It does not help the situation that there is a widening gap in the number of years between discovery of a new major deposit and production.

"The average lead time for gold mines worldwide is close to 20 years, though it can sometimes be more, depending on the jurisdiction," he said. "This highlights the need for worldwide policy reform to remove many of the barriers that obstruct responsible mining."

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The world's gold is melting away, mining experts have warned, and soon all our supplies could be depleted.
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Friday, 13 July 2018 10:55 AM
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