Global gold production is set to peak in 2015 at a record level before gradually decreasing from 2016, Firstgold International’s Mahendra Naik told delegates at the Dubai Precious Metals Conference here.
The 20-year average development time on mines is expected to come to fruition this year following peak deposit discoveries in the mid 1990s, he said.
In 2014, overall mining production grew two percent to 3,114 tonnes, the World Gold Council said, the highest number on record so far.
But limited discoveries of new deposits in the last decade suggested as reversal of this trend after 2015, Naik predicted. As well, miners are deferring expansions or the start-up of new mines due to the current gold price, which at around $1,200 per ounce is down nearly 40 percent on its 2011 peak of $1,921.
Production is outpacing reserve replacements, Naik said, with only 0.5 ounces discovered for every ounce produced. Miners are instead more focused on cost containment, optimising cash flows and preserving liquidity than production growth.
(Editing by Mark Shaw)
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