World gold production to increase strongly in 2021

After falling in 2019, global gold production was impacted by the Covid-19 pandemic in 2020, while the suspension of expansion work and the shrinking of mines that were about to close also exacerbated the decline. According to UK analyst GlobalData, total production is likely to have dropped 5.2% in 2020 to 108 million ounces (moz). This year, however, total production is expected to rise again 5.5% to 113.9 million ounces and grow to 124.1 million ounces by 2024 - an average annual growth rate (CAGR) of 2.9%. According to GlobalData, Indonesia, Peru and the US will be the main drivers of this growth. Combined production in these countries is expected to increase from an estimated 20.1 million ounces in 2021 to 25.3 million ounces in 2024. Major projects expected to become operational during the forecast period include Barrick and Newmont's Turquoise Ridge underground expansion project in Nevada, currently under construction. With an annual gold production capacity of 500koz, the project is expected to be operational in late 2022. The Salares Norte project in Chile, wholly owned by Gold Fields, is also under construction. With an annual gold production capacity of 450koz and a development investment of approximately $ 860 million, the project is expected to be operational in 2023. The largest impact of Covid-19 on gold production was observed in the first half of 2020, when six of the top ten gold producers reported a collective 8.4% year-over-year decline in their production. The biggest declines were at Barrick (12.3%), Newcrest (15%) and Agnico Eagle (8.4%). Larger contributors to offset the declines were Kirkland Gold (48%), due to Detour Gold's acquisition of the Detour Lake Project in January 2020, and Zijin (5.9%). Several gold mines have been forced to temporarily shut down due to the pandemic, including Barrick's Veladero, Pueblo Viejo and Porgera mines and Agnico's Nunavut, Quebec and Mexico mines.