- Gold price surge fuels rapid growth in informal, often illegal, gold mining globally
- Artisanal mining now accounts for about 30% of global gold supply, says World Gold Council
- Unregulated mining causes mercury pollution and supports organized crime revenue streams
The surge in gold prices is driving a rapid expansion in informal and unregulated gold mining that is often illegal and ecologically destructive, according to the World Gold Council.
Artisinal and small-scale gold mining has likely risen to about 30% of global supply, Terry Heymann, the council's chief financial officer, said in an interview. In many gold-rich countries such as Ghana, rural populations are shifting from farming to small-scale gold mining. The unregulated extraction causes mercury pollution and provides organized crime with a new source of revenue, said Heymann.
“People are switching their livelihoods, and that's directly linked to the price of gold,” he said. “It's sobering.”
The World Bank used a more conservative estimate of 20% of global supply in a report released in 2021, which Heymann described as outdated. Total gold mine supply stood at 3591.29 tons in 2024, according to the World Gold Council. This is worth more than $480 billion at current prices.
Heymann recommends the construction of formal facilities such as Dynacor Group's Veta Dorada plant in Peru where artisinal miners can process their ore without polluting the environment, and also gain access to the formal market.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
