Global gold production dragged down by Grasberg

Gold output in Mexico saw an 11% increase y-o-y in Q3 after operations resumed at the Peñasquito mine following a blockade by local communities and contractors.  Last month the dispute again halted work at the Newmont Goldcorp property amid ongoing negotiations.   

Gold production in Australia rose 7% y-o-y, boosted by incremental increases at several mines, while Ghanaian gold production (up 4%) benefitted from scheduled output increases at two Newmont Goldcorp mines – Ahafo and Akyem. Ghana overtook South Africa as the continent’s top gold producer last year.

Russian Q3 mine production was flat y-o-y, but the European nation could add as much as 900,000 ounces in capacity this year alone as several projects in the country – particularly in the Far East region – continue to ramp up.

No 1 producer China saw production fall  (-4%) for another quarter as the industry continues to be impacted by the strict environmental regulations introduced in 2017, according to the WGC. 

In the US, mine production was marginally weaker (-1%) due to lower scheduled output from several Nevada mines – including Cortez and Goldstrike. 

South African gold output (-6%) was impacted by the tail end of industrial action, which hampered production significantly during the first half of the year. Peru’s 12% decline in mine production was a consequence of falling grades due to mine scheduling. 

Indonesian output saw the largest y-o-y decline in Q3 – down 41% on the back of a plunge in output at the Grasberg copper-gold mine. The Freeport McMoRan-operated mine is transitioning to underground operations with the depletion of high-grade open pit ore.