The gold mining industry is grappling with sustaining production growth as deposits of the precious metal become increasingly difficult to find, according to the World Gold Council (WGC). 

Despite a record 4% increase in first-quarter mine production in 2024, overall growth has stagnated. WGC Chief Market Strategist John Reade highlighted that mine production has effectively plateaued since 2016-2018, with only a 0.5% increase in 2023 compared to the previous year.

Reade emphasized that the past decade has seen a significant slowdown in growth. “After 10 years of rapid growth from around 2008, the mining industry is struggling to report sustained growth in production,” he said.

New gold deposits are becoming increasingly elusive as many potential areas have already been thoroughly explored. The process of finding, permitting, financing, and operating new mines has become more challenging. Large-scale gold mining requires substantial capital investment and extensive exploration and development, typically taking 10 to 20 years before production begins. 

Moreover, only about 10% of global gold discoveries progress to development stages. Currently, approximately 187,000 metric tons of gold have been mined globally, with significant contributions from China, South Africa, and Australia. However, reserves that can still be excavated are estimated at only 57,000 tons, according to the United States Geological Survey.

The permitting process has also become more time-consuming and difficult, with governments imposing stricter regulations. Securing necessary licenses can take several years, further delaying mining operations. Additionally, many planned projects are in remote areas, requiring extensive infrastructure development, which adds to the costs.

Gold prices, which recently hit record highs driven by strong demand from China, have slightly retreated, with spot gold currently trading at $2,294.3 per ounce. 

“It’s getting harder to find gold, permit it, finance it, and operate it,” Reade concluded, summarizing the industry’s current challenges.