Gold for Development
mining is a major economic driver for many countries across the world. In 2012,
large-scale gold mining accounted for 15 per cent of Papua New Guinea’s gross
domestic product. In Tanzania, gold provided 36 per cent of export
As demand for gold has grown worldwide,
developing countries have become increasingly important producers. In these
countries, as in developed economies, well-managed, transparent and accountable
resource extraction can be a major contributor to
economic growth. Large-scale commercial gold mining directly employed an
estimated 527,900 people in 2012, in the largest 15 gold-producing countries
Gold mining also brings foreign direct
investment, foreign exchange and tax revenues to countries in need of capital.
For example, in 2012, gold mining companies invested US$729 million in Papua
New Guinea and nearly US$1.4 billion in Ghana, in existing and expanding
Often operating in remote locations,
gold mining companies invest in infrastructure and
utilities. In addition to supporting the needs of a gold mine, these
improvements to roads, water and electricity supplies are a long-term benefit
to businesses and communities across the area, that outlives the production
years of a gold mine.
Responsible gold-mining companies
also have ethical and commercial incentives to improve the health and education
of the communities that
they operate in. Many invest in social infrastructure, including schools,
colleges and health
centres that improve the opportunities and wellbeing of local people.
Others promote entrepreneurship and financial inclusion directly and through
their supply chains, ensuring that their impact is broad and sustainable.
Research commissioned by the World Gold
Council quantifies the direct impact
of gold mining on national economies for the first time. It
demonstrates that through employment, tax revenues and contribution to GDP,
gold mining contributed the equivalent of the GDP of Beijing to the global
economy in 2012.
Building on these findings, data
compiled by the World Gold Council and 15 Member companies offers a
comprehensive, country-by-country view on how value generated by the formal
gold mining sector in 2012 was distributed. The study found that more
than 80 per cent of total spend was made in the country in which operations