Modern Mining April 2024

MINING INDABA REVIEW

Africa – world’s largest regional gold producer Africa is the world’s largest regional gold producer, accounting for some 27% of global gold production in 2022. However, as a global consumer of the precious metal, how does the world’s second-largest continent rank? For insight to this question, Modern Mining spoke to John Reade, senior market strategist at the World Gold Council.

John Reade, senior market strategist at the World Gold Council.

“ A s Africa’s population and economies grow, the continent has the potential to become an important gold demand story. From a gold production point of view, Africa is growing in stature; however, as a significant con sumer of the precious metal, it remains on the backfoot, as it is the poorest continent on earth.” Reade expects that given the continent’s popu lation growth, which currently stands at close to 1,5 billion people and growing rapidly, and its strengthening economies, it could, in the not-too distant future, emerge as a strong consumer of gold. China and India are currently the largest consumers of gold. “I am keenly interested in the long-term potential of gold demand from Africa. We have already noted that countries in Africa have burgeoning populations with some countries also delivering decent economic performance. Looking ahead, I foresee jewellery and investment demand becoming increasingly more

important in Africa. In fact, I am interested in com missioning research into current demand for gold in countries such as Nigeria. As it is, we don’t spend enough time evaluating the demand potential for gold in Africa – not so much for the short-term but certainly for the longer-term – over the next ten to twenty or even thirty years, this as Africa’s econo mies gain traction. I believe that Africa’s story is not only one of gold supply, the continent has the poten tial to become an important demand story as well.” Gold production Although mine production increased steadily over the past three decades peaking at (3 347 t in 2018), the makeup of gold producers changed from 1995. Prior to 2007, South Africa held the number one spot as the top gold producer in the world, but by 2014, the country had dropped to sixth place and produced just 110 t in 2023. “While South Africa’s gold production declined

Africa accounted for some 27% of global gold production in 2022.

22  MODERN MINING  April 2024