Gold mining still most significant source of income in Africa, Asia — WGC

Gold mining still most significant source of income in Africa, Asia — WGC

Almost 60% of payments by gold mining companies to governments come in the form of income and corporation taxes, while a further 15% are royalties, the WGC says.

While the global gold industry injected more than US$171 billion into the world’s economy in 2013, the countries that benefitted the most from such contribution were mainly African and Asian nations, the World Gold Council says.

Speaking to MINING.com, John Mulligan, head of member and investor relations at the WGC, said that even though the focus of the report released this week is on formal, large scale mining, the council acknowledges that artisanal and small-scale (ASM) gold miners can play a significant role in local economies and communities of several developing countries.

The main issue, he says, is that reliable and comparable data on the socio-economic impacts of artisanal gold production across different producing countries is not currently available.

“It is important that moves to increase transparency in the gold market do not unintentionally further marginalize ASM producers or drive them further in to the grip of exploitative middle men or criminal networks,” Mulligan says.

Interestingly enough, the countries for which gold mining represented, in 2013, a very substantial part (percentage) of GDP (>5%) were mostly African and Asians, with the only exception of Peru.

Gold mining still most significant source of income in Africa, Asia — WGC

Many of these countries, says Mulligan, have experienced significant growth in gold mining’s contribution to their national economies:

Gold mining still most significant source of income in Africa, Asia — WGCHe adds that is key for the industry and governments to continue focusing on how to minimize the risk of artisanal and small-scale gold mining funding conflict, while promoting a responsible minerals trade in conflict-affected areas.

Gold mining still most significant source of income in Africa, Asia — WGC

According to the WGC's latest report, gold mining has made significant progress in seeking to develop local human capital and skills. It shows that over 90% of the industry’s employees in most gold producing countries are local workers. (Click on this infographic to see it full size)