In 2022 and 2023, despite frequent interest rate hikes by central banks led by the Federal Reserve to combat near-uncontrolled inflation, the price of gold hit record highs, demonstrating the huge demand for gold.
In 2024, gold is on the cusp of a new bull market as central banks are about to pivot from raising interest rates to cutting. Using the latest production data from the US Geological Survey, there is a list of the countries that are currently producing the most gold, with the following countries rounding out the top ten.
China’s gold production had peaked at 455 metric tonnes in 2016 and has remained above 300 tonnes since then, making it the world’s number one gold producer. Gold mining in China is largely dominated by state-owned enterprises, with the biggest producers including China Gold International Resources (TSX:CGG,HKEX:2099), Shandong Gold and Zijin Mining. It’s worth pointing out that China is not only the largest gold producer, but also the largest gold buyer in 2023, with China’s central bank adding 225 metric tonnes of gold to its holdings last year, for a cumulative total of 2,235 metric tonnes of gold.
Australia’s gold production in 2023 is essentially unchanged from a year ago, which was 314 metric tonnes in 2022. The world’s largest gold producer, Newmont’s (TSX:NGT,NYSE:NEM) Boddington gold mine, which is located in Western Australia, produced 589,000 ounces of gold in the first three quarters of 2023 alone. Australia also has the world’s largest gold reserve of 12,000 tonnes.
Russia’s gold production has grown significantly over the past few years, from 255 metric tonnes in 2017 to 310 metric tonnes over the past two years. The U.S. Geological Survey says Russia has 11,100 metric tonnes of gold reserves, making it the second-largest gold reserve country after Australia.
Canada’s gold production has also increased in recent years, which is 175 metric tonnes in 2019 and 206 metric tonnes in 2022, after a slight decline of 6 metric tonnes last year. The two provinces that produce the most gold in Canada are Ontario and Quebec, which account for more than 70 per cent of Canada’s national production. In 2022, Canada’s gold exports reached C$22.34 billion, contributing significantly to the Canadian economy. In addition, BC’s Golden Triangle is attracting the attention of gold explorers all over the world.
US gold production in 2023 also declined slightly from the 2022 level of 173 metric tonnes. In fact, gold production in the US has shown a downward trend in recent years, with 237 metric tonnes of gold produced in 2017. US gold production is highly concentrated in Nevada, which accounts for 73% of the country’s total gold production, followed by Alaska with 13%. 97% of US gold production in 2023 comes from the country’s top 27 mines.
Kazakhstan’s 2023 gold production has increased to 130 metric tonnes from 69 metric tonnes in 2016. Glencore’s Altyntau Kokshetau gold mine is located in Kazakhstan.
7 Mexico: 120 metric tonnes
Mexico has a long history of gold production, dating back to the early and mid-15th century when Spanish colonial activities in Central America primarily targeted gold and silver. Today, Mexico is among the world’s top gold producers, with mine production reaching 120 metric tonnes in 2023. In Mexico, gold and silver account for 50 per cent of total metal production.
Mining is one of the most important industries in Indonesia, which ranks among the world’s top producers of nickel, copper and gold. In 2023, Indonesia’s gold production is estimated at 110 metric tonnes, an increase of 5 metric tonnes compared to the previous year. Indonesia’s Grasberg mine is the largest mining area in the country and is home to a joint venture mine between Freeport-McMoRan (NYSE:FCX) and Indonesian state-owned company Indonesia Asahan Aluminium.
South Africa produced 100 metric tonnes of gold in 2023, up from 89 metric tonnes in 2022. An estimated one-tenth of the world’s gold reserves are located in South Africa, whose Witwatersrand Basin is one of the world’s largest gold resource areas.
Uzbekistan has been actively mining gold since its discovery in the 1950s. With the collapse of the Soviet Union, gold mining in the country hit rock bottom in the 1990s. The government announced plans in 2019 to double gold production by 2022. However, Uzbekistan’s gold production has remained at around 100 metric tonnes over the past few years. The Muruntau gold mine in Uzbekistan is one of the largest gold mines in the world.
