#World Gold Council#Report#gold#Infographic#World Gold Council#Report#Infographic

Report: What are the social and economic impacts of gold mining?

The World Gold Council (WGC), a market development organization for the gold industry, has released a new report on the social and economic impacts of g...

Admin
|Jun 3|magazine10 min read

The World Gold Council (WGC), a market development organization for the gold industry, has released a new report on the social and economic impacts of gold mining and its implications for growth and development.

The findings show the gold industry directly contributed $83.1 billion to the global economy in 2013 through their production activities and expenditure on goods and services. Taking indirect economic impact into account, this contribution skyrockets to $171.6 billion.

That’s more than the combined gross domestic product (GDP) of Ecuador, Ghana and Tanzania.

“The report proves that the total economic impact of gold mining is significant and substantial,” said the head of member and investor relations at the World Gold Council, John Mulligan.

• Related content: New Silk Road: How China's $16 billion fund will impact the gold mining industry

“It is greater than the GDP of over 150 different countries and considerably larger than the total value of global overseas aid in recent years.”

The report by WGC summarizes the impacts of large-scale commercial gold mining in 47 gold producing countries, which accounts for 90 percent of the world’s gold production.

Gold mining companies directly employed more than one million people in 2013, with 4.2 million more people employed as a result of procurement services.

• Related content:  [VIDEO] World Gold Council releases Q1 2015 Gold Demand Trends report

The report also highlights the social impact of gold. According to the report, gold mining has made significant progress in seeking to develop local human capital and skills. It shows that over 90 percent of the industry’s employees in most gold producing countries are local workers.

“Our findings highlight that commercial gold mining is a major source of income and driver of economic growth, playing an important role in supporting the sustainable socioeconomic development of host nations and communities,” Mulligan said.

The report states there is a positive correlation between growth in gold mining’s impact on host economics and improvement in income status in these countries. Over 60 percent of the top 30 gold producing countries are low or lower-middle income countries.

The report also gold mining plays an important role of value creator and generator. Mine worker salaries are consistently higher than the national average. In many countries with limited employment opportunities, these mining jobs often support many dependents.

The report found that gold mining companies can also accelerate impactful development projects that improve the socio-economic conditions of host communities well beyond the mine.

One major key finding is that healthcare is a significant focus area for gold mining companies, particularly HIV/AIDs, tuberculosis and malaria.

In a significant number of gold producing countries, the growth of gold mining over a ten-year period coincides with a clear reduction in the prevalence of these diseases. 

Stay connected! Follow us on Twitter and like us on Facebook 

Check out the latest edition of Mining Global